Wall Street stocks dipped early Tuesday as markets grappled with higher bond yields and questions about whether an artificial intelligence investment boom could slow.
The yield on 10-year US Treasuries hit a 19-year high of 5.02%, before moderating a bit, as lofty oil prices exacerbate inflation worries ahead of a Federal Reserve decision on interest rates.
Markets are also still mulling over a call from Anthropic CEO Dario Amodei to slow AI development due to worries about AI agents going rogue.
About 15 minutes into trading, the Dow Jones Industrial was down 0.6% at 52,117.49.
The broad-based S&P 500 slipped 0.1% to 7,610.74, while the tech-rich Nasdaq Composite Index also lost 0.1% at 26,162.05.
“The combination of both higher energy prices and higher yields in the Treasury curve certainly act as a headwind to markets,” said Art Hogan of B Riley Wealth Management.
Tuesday is also “day two of trying to contemplate the artificial intelligence and the concept of perhaps slowing the pace of development to make sure we have safety,” Hogan said.
Futures markets are betting with 93% odds that the Fed will hike rates on Wednesday.
