Nasdaq Fights Back: Tech Stocks Wobble as Oil and Bond Rates Surge

U.S. stock indexes dropped on Monday. The Nasdaq recovered some early losses, but investors remain worried about the tech sector. Two major forces are pressuring the market. First, the 10-year Treasury yield hit 5%, a key psychological threshold. This high rate makes borrowing more expensive for companies and individuals. Second, oil prices are surging. This adds to inflation concerns and increases costs for businesses. For the tech-heavy Nasdaq, there is a specific fear. Investors worry that demand for Artificial Intelligence (AI) services may slow down. This could hurt sales of essential inputs like memory chips.