The Money Edit

Closing bell

Closing bell

S&P 500 7,703.78 0.5%
Dow 53,371.23 0.2%
Nasdaq 100 29,475 1.7%
30-year Treasury yield 5.30%, highest since 2007
10-year Treasury yield 4.72%
Nvidia 2%, AMD down 5%, Broadcom down 3%, Meta down 3%
Marvell 8%, Micron down 6%, Fabrinet down 19.9%
WTI crude $85.67 a barrel, up 1.4%. Brent: $91.75, up 1.0%

Bond yields hit a 2007 high, tech slides

What happened

The 30-year Treasury yield climbed to about 5.30% on Tuesday, its highest level since 2007, and that pushed technology stocks lower. The Nasdaq 100 fell 1.7% while the S&P 500 slipped 0.5%, with chipmakers and optical networking companies taking the worst of it, including Marvell down 8% and Micron down 6%.

Why it happened

A Treasury yield is simply what the US government pays to borrow money, and it sets the tone for borrowing costs everywhere else. When that number rises, investors are willing to pay less today for profits a company might earn years from now, and tech valuations lean heavily on those far off profits. Rising yields also make it costlier to finance the enormous buildout of AI data centers, where nobody is certain when the payoff arrives. Oil moving higher on renewed US and Iran tensions added to the pressure.

What it means for you

Higher long term yields tend to show up in your life as pricier mortgages, car loans, and credit card rates. The upside is that the same move usually means better payouts on savings accounts, CDs, and bonds. A one day slide in tech stocks is not a reason to change a long term plan, though it is a good reminder of why holding more than just tech matters.

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