Bond Rout Sends Shockwaves Through Equities as Dow, S&P 500, Nasdaq Decline

The global bond market is experiencing a rout that's now affecting equities. On Tuesday, all three benchmark indexes, Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, closed lower for the third consecutive session.

Rising bond yields weighed heavily on technology stocks, with Nvidia, Micron Technology, and Broadcom Inc. declining by over 2%, 7%, and 3% respectively. The iShares Semiconductor ETF fell nearly 5%, while the Vanguard Information Technology ETF lost more than 2%.

Economist Peter Schiff noted that some investors are rotating from equities to bonds due to falling bond prices and rising yields, but he believes yields won't rise high enough to make bonds a good investment. Despite this, Adam Parker of Trivariate Research thinks the economy is strong enough for big companies to power through any scare.