The Closing Bell
Stocks opened lower and stayed there all session as rising Treasury yields squeezed the AI trade at the same time a fresh round of Iran headlines kept oil and gold in motion, leaving the S&P 500 (SPY) down 0.8% to $765.49 and the Nasdaq-heavy Invesco QQQ Trust (QQQ) off 1.1% to $736.55.
The Fed's inflation warning set the tone.
Fed Governor Cook told markets she expects continued inflation pressure in the coming months from both AI capex and Middle East conflict, said the labor market can handle further rate moves, and warned that cutting now risks reigniting inflation. That, paired with a soft Dallas Fed manufacturing print, kept long yields elevated. The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.9% and the dollar (UUP) firmed 0.3%. Desk chatter repeatedly cited "elevated bond yields and Fed rate expectations" as the reason growth and AI-adjacent names sold off across the tape.
The AI trade took the brunt of it.
Meta Platforms (META) led mega-cap losses, down 4.8% to $715.54, extending last week's stall after Goldman Sachs questioned AI investment economics, and taking a fresh hit when MongoDB's (MDB) CEO stepped down to join Meta, sending MongoDB shares down nearly a fifth intraday. Alphabet (GOOGL, GOOG), Amazon (AMZN) and Microsoft (MSFT) all slipped as reports flagged AI's funding shift "from stocks to bonds," a reminder that the buildout is increasingly financed with debt priced above 5%. Semiconductors, fiber optic connectivity names, data center infrastructure plays and memory and storage stocks all sold off on the same capex-scrutiny logic. Nvidia (NVDA) was the exception, gaining on its $150 billion buyback and drawing flows into related ETFs.
Oil and gold told the geopolitical story.
Trump rejected Iran's proposal on the Strait of Hormuz even as separate reports claimed Tehran offered to halt uranium enrichment for sanctions relief, a claim Press TV denied. The United States Oil Fund (USO) gained 1.1%, aerospace and defense names fell on the diplomatic uncertainty, and gold got hit hard, with SPDR Gold Trust (GLD) down 3.9%, an unusual combination with rising yields that points to real-rate pressure overwhelming safe-haven bids.
Single names moved on their own news.
Knorex (KNRX) exploded higher, up over 276%, on a planned carve-out of its AscendX Media unit. Kodiak Sciences (KOD) jumped 178% after UBS lifted its price target to $120. General Motors and Ford both fell, GM after a Mexico plant halted output on hurricane disruption. Getty Images is reportedly three days from default and in talks with lenders for a bankruptcy loan.
After the bell and tomorrow:
Jefferies, Vail Resorts and IDT report after the close. Micron heads into earnings this week with JPMorgan flagging an HBM shortage running through 2028. OpenAI's DevDay Tuesday may unveil a new consumer agent, and the NRC is expected to issue a construction permit for TVA's Clinch River nuclear site.
Bottom line: rates and AI-financing doubts drove the selling today, and until yields ease or Iran headlines clarify, expect more of the same chop.