Tech Shares Pull Back as Yields Near 5% and Oil Rebounds
Technology stocks retreated after recent records as higher Treasury yields and crude prices revived inflation worries and put focus on Washington’s next moves.
Technology shares slipped early Wednesday as U.S. stocks weakened, with the 10-year Treasury yield approaching 5% and Brent crude moving back toward $100 a barrel. The Nasdaq Composite pulled back after setting records in each of the previous two sessions.
The 10-year yield reached 4.99%, up from 4.95% at Tuesday’s close, according to Charles Schwab’s morning market update. Higher yields can weigh on growth stocks because they make future earnings less valuable compared with returns available from bonds.
Oil prices also turned higher after easing earlier in the week. The rebound renewed concern that fuel costs could keep inflation elevated, complicating expectations for Federal Reserve policy.
Investors were also reacting to President Donald Trump’s statement that he would support a U.S. ban on diesel exports. The proposal comes as officials face pressure over fuel costs, though the morning reports did not establish whether a ban would be enacted.
The pullback followed a strong run for technology shares. On Tuesday, the Nasdaq rose 0.5% to a record close, while chip stocks led gains after Trump reiterated support for artificial intelligence during a United Nations speech, Schwab reported.
Trading was not uniformly negative across technology-related names. Meta extended gains amid enthusiasm for its new AI agent, Muse, while AMD shares slipped after recently crossing a $1 trillion valuation threshold, according to Yahoo Finance’s morning market check.
Markets are also watching the planned meeting between Trump and Chinese President Xi Jinping in Washington on Thursday. Trade, AI safeguards and energy are among the issues in focus, with possible implications for technology companies and oil markets.
Investors will look for signs that the yield and oil moves persist, and whether they spread pressure beyond technology. Wednesday’s U.S. manufacturing survey and weekly oil supply data were also due, offering fresh signals on business activity and crude-market conditions.
This article was produced with the help of AI technology.
Source: Yahoo Finance
