Tech Stocks Slide on High Interest Rates, Inflation Concerns

Wall Street's momentum slowed as tech stocks fell on worries that their prices shot too high during the AI boom. The S&P 500 declined by 0.7% for a third straight day since setting its all-time high on Thursday, while the Dow Jones Industrial Average dipped 116 points or 0.2%. The Nasdaq composite sank 1.3%, leading to declines in stocks like Micron Technology and chip companies Nvidia and Broadcom.

The pressure on these tech stocks was attributed to high interest rates, which remained above their pre-war levels despite a slight decrease in the 10-year US Treasury yield from 4.72% to 4.70%. The yield remains well above its level from just before the war with Iran began. This has made investors more cautious about investing in expensive stocks.

Brent crude oil prices have also contributed to the high yields, adding 0.2% to $91.02 per barrel. This surge in oil prices is causing inflation concerns and pushing up borrowing costs. The average long-term US mortgage rate is near its highest level in a year, affecting the housing industry.

Home Depot's stock fell despite reporting stronger profit and revenue for the latest quarter than analysts expected. Chief Financial Officer Richard McPhail stated that Home Depot saw its customers continuing to pursue smaller projects.