Chip Stocks Sink as Inflation Woes Boost US Yields: Markets Wrap

A selloff in high-flying chipmakers drove stocks lower, with the market also falling alongside bonds after inflation data showed the impacts of energy disruptions stemming from the war in Iran.

The faster-than-estimated core consumer price index halted a rally in equities, with the S&P 500 dropping 1% from a record. The Nasdaq 100 slid 2%. A gauge of semiconductor firms sank 6%. Renewed inflation worries sent two-year yields toward their highest since June. Money markets continued to price in about 70% odds of a Federal Reserve hike by April 2027. US crude topped $101.