Tech stocks tumbled more than 2% on Monday as rising oil prices and elevated Treasury yields pressured markets ahead of a critical Federal Reserve policy decision.
Tech stocks (XLK) declined more than 2%, reflecting broad sector weakness.
NVDA led the semiconductor complex lower as tech stocks declined more than 2%.
Brent crude rose to $109 per barrel, stoking inflation worries and boosting oil prices.
AMD is a notable chip stock likely falling in sympathy with the broader semiconductor decline.
The 10-year Treasury yield remained elevated near 5%, signaling persistent rate expectations.
Sandisk was mentioned as a notable stock viewed by readers, with no directional indication.
Nebius Group was mentioned as a notable stock viewed by readers, with no directional indication.
U.S. markets opened lower on Monday as Brent crude climbed to $109 per barrel, fueling inflation concerns ahead of this week's Federal Reserve meeting. The technology sector bore the brunt of the sell-off, with the XLK index falling over 2% as semiconductor leaders like NVDA led the decline. Meanwhile, the 10-year Treasury yield hovered near 5%, reflecting market expectations for further monetary tightening.
Tech stocks are falling due to a combination of rising energy costs, which exacerbate inflation fears, and elevated Treasury yields that increase the cost of capital for growth-oriented companies.