Stocks fell across the board Tuesday as surging long-term Treasury yields rattled investors and a broad selloff in semiconductor shares pulled the technology sector sharply lower. The S&P 500 posted its third consecutive losing session, and all three major indexes finished in the red as the 30-year Treasury yield climbed to its highest level in nearly two decades. Investors also digested a wave of earnings reports and the blockbuster NextEra Energy-Dominion Energy merger announcement.
What Moved Markets
The Dow Jones Industrial Average closed at 49,363.88, shedding 322.24 points, or 0.65%. The S&P 500 (SPI:SP500) fell 49.44 points, or 0.67%, to finish at 7,353.61. The Nasdaq Composite dropped 0.84% to close at 25,870.71, weighed down by heavy selling in chip stocks.
The bond market was once again the primary source of pressure. The 30-year Treasury yield surged to 5.198%, its highest level in nearly 19 years, while the 10-year yield rose 6 basis points to 4.687%, marking its highest reading since January 2025. Rising yields reflect persistent concerns about inflation reaccelerating, and they make the rich valuations on growth and technology stocks harder to justify. With the 20-year and 30-year yields now at levels not seen in close to two decades, the fixed-income market is sending a clear signal that investors expect rates to stay elevated for longer.
Notable Movers
Qualcomm (QCOM) plunged 13% in its worst session since 2020, leading a brutal selloff across semiconductor names. Intel (INTC) dropped 8%, Micron (MU) fell 6%, and AMD (AMD) slid 3% as rising inflation fears and elevated oil prices triggered profit-taking in stocks that had surged on AI optimism. Nvidia (NVDA) held up better than its peers, slipping less than 1% a day ahead of its closely watched earnings report.
Dominion Energy (D) jumped roughly 12% after NextEra Energy (NEE) announced an all-stock deal to acquire the utility for approximately $67 billion, or $75.97 per share — a 23% premium to Dominion’s prior close. The deal will create the largest utility company in the country by far. NextEra shares fell about 4% on dilution concerns.
Home Depot (HD) reported first-quarter results that were roughly in line with expectations. Revenue came in at $41.8 billion, up 4.8% year-over-year, with comparable sales rising 0.6%. Adjusted earnings per share of $3.43 edged past the $3.41 consensus estimate. The company reaffirmed its full-year guidance calling for sales growth of 2.5% to 4.5%. Shares traded modestly lower on the session.
Looking Ahead
All eyes turn to Nvidia’s earnings report after Wednesday’s close. Given the steep losses across semiconductor stocks this week, Nvidia’s results and guidance will be critical in determining whether the recent AI-driven rally has room to run or if the pullback deepens. Investors will also continue monitoring Treasury yields closely — if long-term rates keep pushing higher, the selling pressure on equities is likely to intensify. On the economic calendar, markets will be watching for any fresh data on housing and inflation that could shift the outlook for Federal Reserve policy.