Wall Street Under Renewed Pressure; Yields Breach 5%

US stock markets closed lower on Monday (Sept. 14) following a sharp sell-off in semiconductor and artificial intelligence-related stocks. The S&P 500 fell 0.5%, the Nasdaq 100 dropped 0.8%, and the Dow Jones lost approximately 152 points.

Pressure on the technology sector intensified after Anthropic CEO Dario Amodei called for a slowdown in AI development to mitigate risks associated with increasingly sophisticated models. This view has also garnered support from OpenAI CEO Sam Altman and Elon Musk, prompting investors to adopt a more cautious stance regarding investment prospects in the chip and AI infrastructure sectors.

Nvidia shares fell 3.4%, Broadcom plunged 4.8%, Micron dropped 5.2%, and Intel declined 5.6%. Lam Research slumped 8.3%, while GE Vernova fell 8.6%. Weakness in the banking and manufacturing sectors also weighed on the Dow Jones.

Market pressure was further compounded by the 10-year US Treasury yield, which briefly breached the 5% mark for the first time since 2023. A surge in oil prices reignited inflation concerns, while the broader market anticipates a 25-basis-point interest rate hike by the Federal Reserve on Wednesday.

Newsmaker Analysis: Wall Street continues to face a combination of pressures stemming from AI stock valuations, high yields, and energy-related inflation risks. As long as the market anticipates a hawkish Fed and oil prices remain elevated, technology stocks and interest-rate-sensitive sectors are likely to remain volatile.

Source: Newsmaker.id