US Stocks Pull Back Further

The Dow Jones Index is losing 139 points. Losses were led by Caterpillar (-2.86%), Nvidia (-1.90%) and Home Depot (-1.24%). Offsetting the fall, top gainers were J&J (2.29%), IBM (1.43%) and Chevron (1.41%).

US stocks were mostly lower on Tuesday, extending losses from the previous session as higher borrowing costs offset recent support from AI infrastructure companies. The S&P 500 fell 0.5%, the Nasdaq lost 1.6%, and the Dow eased 150 points. Long-term Treasury yields extended their surge to multi-year highs as inflation risks and surging bond issuance from AI companies raised different estimates on term premia. Inflationary concerns were magnified by more increases in energy prices as the US signaled a prolonged blockade on Iran tanker exports. AI companies were mostly lower, with Nvidia, Meta, Tesla, and Oracle dropping up to 3%. Credit-sensitive financial companies were also under pressure with Goldman Sachs and JPMorgan trading in the red. Meanwhile, Home Depot gained around 1% after beating earnings estimates despite high borrowing and housing costs.

US equity futures were mostly lower on Tuesday, extending losses from the previous session as higher borrowing costs offset recent support from AI infrastructure companies. Contracts for the S&P 500 and Nasdaq were 0.5% and 1.3% down, respectively, and those for the Dow were flat. Long-term Treasury yields extended their surge to multi-year highs as inflation risks and surging bond issuance from AI companies raised different estimates on term premia. Inflationary concerns were magnified by more increases in energy prices as the US signaled a prolonged blockade on Iran tanker exports. AI companies were mostly lower, with Nvidia, Meta, Tesla, and Oracle dropping up to 3% premarket. Credit-sensitive financial companies were also under pressure with Goldman Sachs and JPMorgan trading in the red. Meanwhile, Home Depot gained around 1% after beating earnings estimates despite high borrowing and housing costs.