Wall Street Tanks Amid AI Jitters and Soaring Treasury Yields

Wall Street's major indices took a hit on Monday as investors grappled with concerns over artificial intelligence development and higher Treasury yields.

The Nasdaq Composite closed 0.56% lower at 26,186.41, while the S&P 500 slipped 0.48% to 7,619.98. The Dow Jones Industrial Average fared slightly better, ending down 0.29%, or 152 points, at 52,421.20.

The technology sector was particularly hard hit, with leading AI executives calling for a slower pace of model development on safety grounds. This led to a sell-off in semiconductor stocks, with Nvidia, Broadcom, and Intel among those under pressure. However, software and cybersecurity names fared better, with ServiceNow, Adobe, and Workday gaining more than 3%.

Higher oil prices also contributed to the market's decline, with Brent crude settling 1% higher at $105.68 a barrel and WTI gaining 1.3% to $101.39. The US 10-year Treasury yield briefly reached 5.012%, its highest intraday level since 2007, before retreating to around 4.96%.