The U.S. 10-year Treasury yield moved above 5% Monday for the first time since 2023, adding fresh pressure to equities as markets brace for a likely Federal Reserve rate hike. The move reflects renewed inflation concerns tied partly to elevated oil prices, heavy borrowing and a deteriorating U.S. fiscal outlook.
Technology stocks took the hardest hit. Nvidia fell 3.4%, Micron dropped more than 5%, while AMD and Broadcom lost more than 4%. The Philadelphia Semiconductor Index sank 5.9% as investors also reacted to calls from major AI executives for slower development of advanced systems.
Brent crude settled near $105.68, keeping energy-driven inflation risk elevated. Traders now price roughly a 90% chance of a 25-basis-point Fed hike Wednesday.
Sources: Reuters
