US Stocks-Tech selloff weighs down Wall Street as bond yields climb

The Philadelphia SE Semiconductor Index .SOX tumbled as investors fled stocks that had rallied previously on booming AI-related demand. Rising borrowing costs lowered how much investors were willing to pay for potential growth in technology profits.

"It starts off almost like a domino effect. Talks break down. That leads to oil prices going up. That leads to higher inflation expectations and bond yields rise," said Burns McKinney, portfolio manager at NFJ Investment Group. He added that "every time bond yields rise, that tends to disproportionately hit the technology names."

According to preliminary data, the S&P 500 .SPX lost 51.97 points, or 0.67%, to end at 7,692.10 points, while the Nasdaq Composite .IXIC lost 350.45 points, or 1.31%, to 26,294.46. The Dow Jones Industrial Average .DJI fell 115.93 points, or 0.22%, to 53,343.85.

Among the S&P 500's 11 major sectors, the information technology sector .SPLRCT created the biggest index-point drag on the day and was the benchmark's biggest percentage loser.