Chip Rout Sends Nasdaq 100 Down 1.5% as Bond Yields Spike
NDX sits 29% above its 52-week low of $22,841.417.
Summary
A sharp selloff in semiconductor stocks dragged the Nasdaq 100 down 1.5% on August 18, with a key chip gauge plunging 5.5%. The rout comes amid rising bond yields—10-year Treasuries are near their highest since early 2025—fueled by inflation anxiety, heavy government debt supply, and oil topping $85 as US-Iran tensions over the Strait of Hormuz remain deadlocked. This is the latest in a series of tech-led declines, following the Nasdaq's correction in late July and a 2.1% drop on July 29. The combination of higher long-end yields and geopolitical risk is pressuring valuations in the AI-driven chip sector, which had been the market's best performer this year. Traders will watch whether bond yields continue to climb and whether oil supply disruptions escalate, as both would further compress tech multiples.
At the time of this announcement, NDX was trading at $29,471.57 on NASDAQ in the Technology sector. The 52-week trading range was $22,841.42 to $30,762.20. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Moneycontrol.