Nasdaq dips 0.68% as rising yields and oil prices renew inflation fears, pressuring tech and semiconductor stocks.

The Nasdaq Composite fell 0.68% due to rising 10-year U.S. Treasury yields hitting 4.63%, the highest since February 2025, which increased borrowing costs and made bonds more attractive than stocks. This shift particularly impacted AI-driven tech and semiconductor stocks, with the Philadelphia Semiconductor Index dropping over 4%. Additionally, Brent crude oil prices rose 1.4%, fueled by tensions around Iran, keeping inflation concerns alive. These factors have revived fears of further Federal Reserve rate hikes, with markets now pricing in a 40% chance of a rate increase in January, shaking confidence in growth stocks and creating uncertainty about the market's near-term direction.