Global Market Selloff Continues as Bond Yields Reach Near Two-Decade Highs
The global market continued its downward trend on Tuesday, with all three major US indexes closing lower for the third consecutive session. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite dropped by 0.22%, 0.69%, and 1.33% respectively.
Rising bond yields weighed heavily on technology stocks, with Nvidia, Micron Technology, and Broadcom shares plummeting over 2%, 7%, and 3%. The iShares Semiconductor ETF (SOXX) fell nearly 5%, while the Vanguard Information Technology ETF (VGT) lost more than 2%.
The global bond selloff, fueled by renewed tensions between the US and Iran, pushed long-term yields to near two-decade highs. Japan's 10-year bond yield jumped to its highest level in 30 years, while German 30-year Bund yields climbed to their highest since 2011.