Major U.S. indices fell as the 10-year Treasury yield topped 5% and oil prices surged, while AI-related equities like Nvidia and Corning led a broader market decline.
Corning plunged 13% amid a broader sell-off in AI-related stocks.
Brent crude advanced 1.8% after Saudi Arabia shut a key pipeline, stoking supply fears.
WTI gained nearly 2% on supply concerns following the Saudi pipeline shutdown.
Nvidia fell 3% as AI-linked equities declined after cautious comments from AI executives.
The iShares AI Innovation and Tech Active ETF retreated nearly 4% as AI stocks sold off.
S&P 500 futures fell 0.3% as the 10-year yield topped 5% and oil prices surged.
Nasdaq-100 futures retreated 0.3% amid rising yields and AI stock weakness.
Dow futures shed 229 points as bond yields spiked and oil prices climbed.
South Korea's Kospi slipped 0.85% in sympathy with global market declines.
Hong Kong's Hang Seng gave up 1% as Asian markets tracked US losses.
China's CSI 300 edged down 0.67% amid global risk-off sentiment.
Japan's Nikkei 225 ended roughly flat, showing relative resilience.
U.S. stock futures retreated Tuesday as the 10-year Treasury yield climbed above 5% for the first time since 2007. Rising bond yields and surging oil prices, fueled by a Saudi pipeline shutdown, pressured equities while investors braced for the upcoming Federal Reserve interest-rate decision. AI-linked stocks faced significant selling pressure following cautious industry commentary.
Historically, a 10-year yield approaching or exceeding 5% acts as a persistent drag on equity valuations, as higher risk-free rates increase borrowing costs and discount future earnings.
Oil prices are climbing due to supply concerns triggered by Saudi Arabia shutting down a key pipeline that bypasses the Strait of Hormuz.