18.08.202613:36:12UTC+00US Stocks Pull Back Further

US stocks mostly declined on Tuesday, extending the previous session’s selloff as the drag from higher borrowing costs outweighed recent support from AI infrastructure names. The S&P 500 slipped 0.5%, the Nasdaq fell 1.6%, and the Dow lost about 150 points. Long-term Treasury yields climbed to new multi-year highs, driven by persistent inflation worries and a surge in bond issuance from AI-related companies, which fed into varying estimates of term premia. Inflation concerns were further aggravated by another jump in energy prices after the US signaled it would maintain a prolonged blockade on Iranian tanker exports.

AI-linked stocks traded mostly lower, with Nvidia, Meta, Tesla, and Oracle each declining as much as 3%. Credit-sensitive financials also came under pressure, with Goldman Sachs and JPMorgan both in negative territory. In contrast, Home Depot rose roughly 1% after reporting earnings that beat expectations despite a challenging, high-rate environment.