US stock indexes fall amid rising bond yields
US stock indexes ended the week lower amid rising long-term bond yields and oil prices. The S&P 500 lost about 1.43%, the Nasdaq Composite fell 2.05%, and the Dow Jones Industrial Average declined 0.85%. As CNBC Top News reports, tensions surrounding Iran contributed to higher oil prices and intensified concerns about persistent inflation.
The US Treasury Department said on Wednesday that it would more than double the volume of long-term government debt buybacks. After the announcement, yields initially declined and stocks rose. However, on Thursday and Friday, yields moved higher again as increased oil prices supported inflation concerns.
AI infrastructure stocks
Companies linked to artificial intelligence infrastructure also faced pressure. Over the week, GE Vernova shares fell by 10%, while Eaton shares declined by 7.2%. Investor sentiment may have been affected by reports of political resistance to data center construction, including an executive order by Pennsylvania Governor Josh Shapiro that sets strict standards for development projects in the state.
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Broadcom shares lost 4% on Wednesday after Marvell Technology announced a major partnership with Google, which is part of Alphabet, in technologies for the TPU processor ecosystem. On Friday, Bloomberg reported that Broadcom is in talks to raise more than $60 billion in debt to finance an AI-related deal. According to the agency, a specially created entity could use borrowed funds to purchase Broadcom chips and lease them to a customer, such as Anthropic.
Retailer reports
Home Depot exceeded expectations for revenue and profit, while the company’s comparable sales rose 1.7%. Home Depot’s results were also better than those of its main competitor, Lowe’s. TJX Companies exceeded forecasts for revenue, profit, and comparable sales, although the figure for its Marmaxx division, which includes T.J. Maxx and Marshalls, rose only 1% versus the expected 3%.
Walmart shares fell 9% on Thursday after US comparable sales and its profit forecast disappointed the market. Target also reported pressure on consumers’ discretionary spending. At the same time, Ross Stores rose after a better-than-expected report and a strong forecast, while BJ’s Wholesale exceeded forecasts and raised its full-year profit outlook.
