AI stock sell-off combined with US bond yields breaking 5%, US stocks closed lower on Monday

On Monday, the three major US stock indexes collectively closed down, with the Dow Jones Industrial Average falling 152 points, the S&P 500 falling 0.5%, and the Nasdaq falling about 0.6%. AI related stocks were sold off, Nvidia fell 3%, Corning fell 13%, and iShares AI Innovation and Technology Active ETF fell nearly 4%. The 10-year US Treasury yield briefly broke through 5%, Brent crude oil closed above $105 per barrel, and WTI settlement price exceeded $101. The market focus shifted to Wednesday's Federal Reserve decision, with federal funds futures showing a probability of a 25 basis point rate hike of approximately 92%. Natixis Chief Economist Christopher Hodge predicts that this will be the first rate hike during the era of Federal Reserve Chairman Kevin Walsh. The Asia Pacific market fell in early trading on Tuesday, with Nikkei 225 down 0.25% and South Korean Kospi down 0.43%. (Source: Federal Reserve)