Shares in the technology sector declined amid sustained high oil prices and Treasury yields, with investors alarmed by persistent inflation and signals from the Federal Reserve indicating potential rate hikes.
Technology shares slipped on Monday as oil prices stayed elevated and Treasury yields held near levels that continue to unsettle investors ahead of this week’s Federal Reserve meeting. Brent crude had moved above $100 a barrel in recent sessions, while the benchmark 10-year Treasury yield remained close to 5%, reinforcing concerns that inflation could remain sticky for longer than markets had hoped.
Chipmakers were among the weaker names, with the technology sector falling by more than 2% in early trading. Nvidia led the semiconductor group lower, reflecting broader pressure on high-growth stocks that are sensitive to borrowing costs and rate expectations. Traders were also watching signals from the AI industry after senior figures at OpenAI and Anthropic publicly warned about the risks of rapid development.
The latest inflation backdrop has added to those worries. Official figures published last week showed US consumer prices rising 3.4% in the year to August, with gasoline costs accounting for more than a third of the increase, according to the Bureau of Labour Statistics. Diesel has been an even sharper pressure point: AP reported that the national average had climbed to $6.06 per gallon by 11 September, while other reports said the price had risen above $6 for the first time and was feeding through to transport, food and delivery costs.
Bond markets have also kept the focus on policy tightening. Data cited by market trackers put the 2-year Treasury yield at 4.64%, a level that suggests investors still expect the Federal Reserve to keep policy restrictive. Betting markets have priced in a high chance of a rate increase at the upcoming meeting, leaving equities vulnerable to any sign that officials intend to keep rates higher for longer.
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