Tech Stocks Slide Amid Bond Yield Spike

US stocks suffered losses on Tuesday, led by tech shares, as bond yields spiked and investors became more cautious. The Nasdaq 100 dropped 1.7%, while the S&P 500 fell 0.7%, marking three straight days of declines for the indexes.

The rise in long-term interest rates is a major concern for growth stocks, which tend to be sensitive to changes in borrowing costs and future cash flows. AI-linked stocks took the brunt of the selloff, with Nvidia Corp. and Intel Corp. shares slumping 2.3% and 6.6%, respectively.

The S&P 500 Energy Sector Index bucked the trend, closing at an all-time high as geopolitical risk propelled oil prices higher. Despite the declines, expectations for a Federal Reserve rate hike remain elevated, with just over a third of traders pricing in an increase.