How bond yields are slowing AI-fueled stock rally

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Welcome to The Hill's Business & Economy newsletter{beacon} Business & Economy Business & Economy The Big Story How bond yields are slowing AI-fueled stock rally Bond yields in the U.S. have risen this year, slowing down a stock market that has risen for years on the back of the artificial intelligence (AI) buildout. © Yuki Iwamura, Associated PressAfter consistently rising, with a few exceptions, from late March through mid-August, the S&P 500 is down nearly 90 points from closing time on Oct. 7. The Nasdaq composite, meanwhile, is down more than 1,100 points over the last two weeks, hitting its lowest point in more than a month on Tuesday. The S&P 500’s information technology sector, which includes AI-focused firms such as Microsoft and Nvidia, is also down by more than 500 points from two weeks ago. “If those [tech] stocks don't do well, it's pretty hard for the stock market to do much of anything,” Steve Sosnick, chief strategist at Interactive Brokers, told The Hill. Bond yields in the U.S. and globally have increased throughout the last seven months, as high oil prices amid the Iran war and mounting government deficits have compelled investors to flee the market. The 10-year U.S. Treasury bond yield is down roughly 25 basis points from Oct. 7, when it reached a 24-year high of 5.365 percent during intraday trading. But the note remains more than a full percentage point above where it stood at closing time on Feb. 27, the day before the U.S. and Israel launched strikes on Iran. The 30-year Treasury bond yield has also declined over the last two weeks, falling from 5.733 percent during intraday trading on Oct. 8 to under 5.45 percent this week. Read more tomorrow at TheHill.com. Welcome to The Hill’s Business & Economy newsletter, I'm Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue. Did someone forward you this newsletter? Subscribe here. 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James Clyburn (D) were involved in a bribery scheme in connection to Hawaiian naval defense contractor Navatek acquiring federal contracts in their home state, according to a report published by ProPublica on … Read more Cook Political Report shifts 2 Senate races toward Democrats, 1 toward GOP The Cook Political Report, a nonpartisan election handicapper, on Tuesday moved Minnesota’s Senate race from likely to lean Democrat, while also moving South Carolina’s Senate seat from likely Republican to lean Republican. Read more What People Think Opinions related to business and economic issues submitted to The Hill: Bank of America’s fine is a warning to Wall Street Why can’t I afford life? Boomer prosperity is masking a weak economy. You're all caught up. Check out The Hill's Business page for the latest coverage. Like this newsletter? 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