Tek-fall på Wall Street

On Tuesday, Wall Street saw the start of a challenging day for some major indices. Investors are uneasy, as rising interest rates and high oil prices are weighing down global markets. Several tech stocks, particularly in the memory sector, saw significant drops in the opening bell: Sandisk, Micron, and Seagate fell by over 4% each.

Investment director Peter Boockvar of One Point BFG Wealth Partners told CNBC that despite the strength of the AI trend, the stock market has not shown particular concern for the persistent rise in global bond yields. However, the question is simply when, not if, the market will begin to react if this trend of rising yields continues.

The 30-year U.S. Treasury bond yield reached 5.22% at an auction last week, the highest level since 2001. In France, the 30-year rate is at its highest since 2008, while the British rate is nearing 6%. Germany has seen its highest borrowing costs in 15 years, according to Bloomberg. Factors contributing to this include fear of high oil prices, with talks between Iran and the U.S. stalled, and President Donald Trump suggesting on Monday a possible attack on allied Oman.

The Middle East is again at the center of tensions, with rising long-term yields reflecting this instability. Analysts at Yardeni Research warn that investors are increasingly concerned about the massive debt levels among AI giants. While they do not recommend panic, they are closely monitoring the situation of bond vigilantes, as reported by Ed Yardeni's strategists.