US Stocks-Wall Street ends down, calls for AI slowdown pummel chipmakers

Shares of Nvidia NVDA.O, Broadcom AVGO.O, Micron Technology MU.O and Advanced Micro Devices AMD.O declined, and the PHLX chip index .SOX fell sharply.

Brent crude futures LCOc1 settled 1% higher at $105.68 per barrel as worries about energy supplies mounted following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East.

High inflation, heavy corporate and government borrowing and concerns about the long-term U.S. fiscal trajectory have sent U.S. Treasury yields higher in the past month. The 5% mark that the 10-year yield hit on Monday is a threshold that analysts warned could ripple through the U.S. economy and threaten the bull market in stocks by denting the relative appeal of U.S. equities.

Traders are pricing in a 90% chance that the Fed will raise interest rates by 25 basis points at its policy meeting on Wednesday to fight inflation related to high oil prices, according to CME's FedWatch.