Nasdaq 100 Falls on Chipmaker Rout as Yields Rise: Markets Wrap
(Bloomberg) — Wall Street’s crowded chipmaker trade continued to unravel, dragging down the stock market on speculation that a surge from this year’s lows has gone too far amid war-fueled inflation risks that have sent global bonds sinking.
After a roughly 50% surge in semiconductor shares since the end of March, calls for a pullback or consolidation started to emerge. While conditions for a long and painful downturn aren’t in place, the high-profile group of technology shares have taken a hit in recent days, especially with bond yields at multi-year highs.
A jump in energy prices caused by the Iran war has dragged down bonds around the globe, stoking inflation fears and increasing the chances that central banks will need to raise, rather than cut, interest rates.
That happened at a time when fund managers chasing the powerful rally in equities increased their allocations to stocks by the most on record this month, according to a Bank of America Corp. survey. Fund managers are now the most overweight on equities they have been since January 2022 and are close to triggering BofA’s sell signal, strategists led by Michael Hartnett said in a note.
“Yes, we remain tactically bullish, but we would not be maximally net long given the elevated probability of a pullback led by tech,” say the JPMorgan Market Intelligence desk led by Andrew Tyler, adding dips will likely be bought.
Corporate Highlights:
Alphabet Inc.’s Google agreed to create an artificial-intelligence cloud business with Blackstone Inc., aiming to compete with companies like CoreWeave Inc. in a burgeoning market. Intercontinental Exchange Inc., owner of the New York Stock Exchange, is adding futures contracts for computing power as the market for tracking the price of what’s driving AI technology continues to develop. A key gauge of Home Depot Inc. sales missed expectations in the latest quarter as muted housing demand and high borrowing costs limited consumer spending on improvement projects. Target Corp. has quietly emerged as one of this year’s hottest retail stocks, outperforming many staples and big-box peers. The rally has also raised the bar heading into quarterly results. Amer Sports Inc. raised its full-year guidance and first-quarter results beat estimates, buoyed by demand for Salomon shoes. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.5% as of 9:33 a.m. New York time The Nasdaq 100 fell 0.4% The Dow Jones Industrial Average fell 0.7% The Stoxx Europe 600 rose 0.4% The MSCI World Index fell 0.3% Currencies
The Bloomberg Dollar Spot Index rose 0.4% The euro fell 0.5% to $1.1603 The British pound fell 0.3% to $1.3389 The Japanese yen fell 0.2% to 159.13 per dollar Cryptocurrencies
Bitcoin fell 0.1% to $76,767.01 Ether was little changed at $2,114.27 Bonds
The yield on 10-year Treasuries advanced seven basis points to 4.66% Germany’s 10-year yield advanced four basis points to 3.19% Britain’s 10-year yield advanced three basis points to 5.13% The yield on 2-year Treasuries advanced six basis points to 4.10% The yield on 30-year Treasuries advanced six basis points to 5.18% Commodities
West Texas Intermediate crude rose 0.5% to $109.24 a barrel Spot gold fell 1.9% to $4,479.60 an ounce ©2026 Bloomberg L.P.
