Rising bond yields hit AI-linked tech as Nasdaq 100 falls 1.68%

The 30-year Treasury yield touched a 2007-high of 5.33% on Monday, pressuring the debt-financed AI buildout; the semiconductor ETF fell about 5% and memory dropped over 8%.

Deepakshi

Kristal Research & Marketing team

19 Aug

Key takeaways — AI summary

The Nasdaq 100 fell 1.68% to 29,491, the S&P 500 slipped 0.66% to 7,694 and the Dow eased 0.22% to 53,344; small caps lost 1.24%.
The trigger was the bond market: the 30-year Treasury yield touched 5.33% on Monday, its highest since 2007, with long-dated yields in Japan, Germany and France at multi-decade highs; softer US data pulled the 10-year back to 4.708% on the day.
Every Philadelphia semiconductor index stock fell; the semiconductor ETF (SOXX) dropped about 5% and the memory ETF (DRAM) over 8%, with the document noting Nvidia's debt-insurance cost now near Meta's (80 vs 84) as Goldman Sachs cited $489bn of AI-related bond issuance year-to-date.
Money rotated into defensives: Energy rose 1.79%, Health Care 1.59% and Consumer Staples 1.06%, with health care and biotech at all-time highs; Klarna fell 22.8% after cutting its full-year revenue outlook on weaker German spending.
After the close, President Trump said he would pause 50% tariffs on some Canadian goods for three days; selling carried into Asia, with Japan's Nikkei 225 down about 2.6% and SoftBank off more than 8%.

Generated by Kristal AI · reviewed by the research desk

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