Wall Street Falls as Rising Yields Pressure AI Stocks
U.S. indexes fell as Treasury yields hit 4.58 percent amid Middle East tensions. Tech stocks led losses as investors weighed a potential December rate hike.
The United States stock market fell Friday as the 10-year Treasury yield hit 4.58%, marking a significant rise in borrowing costs. The surge followed escalating conflict in Iran, which fueled global inflation fears. Investors repriced risk as the likelihood of a December interest rate hike climbed sharply.
### Yield Spikes Threaten AI Momentum The Nasdaq Composite dropped 1.63% during the morning session, erasing weekly gains as high-growth technology stocks retreated. Investors shifted focus from artificial intelligence optimism to the reality of higher-for-longer interest rates. CME Group's FedWatch tool shows a 40% chance of a 25-basis-point hike in December, up from prior week levels.
