Indexes Fall as Chip Stocks Recover

The major indexes, including the Dow and Nasdaq Composite, took a hit on Tuesday, despite a rebound in chip stocks. The Dow fell 0.7%, the Nasdaq Composite dropped 0.7%, and the S&P 500 lost 0.4%. This is after Monday's AI-related sell-off, which saw Nvidia down 2.9%.

However, chip stocks made a recovery today, with Qualcomm up 4% and Advanced Micro Devices gaining 2.3%. The 10-year Treasury yield reached its highest level since July 2007 at 5.041%, while the 30-year yield hit a 19-year high of 5.401%. This has implications for everything from car loans to corporate borrowing.

Oil prices continued to rise, with Brent crude up 2.6% and U.S. crude adding 3.3%. The United States Oil Fund gained 4.1% today. Energy costs are a major concern, driving more than a third of August's inflation increase.