US shares fell on Tuesday as rising global bond yields and another sell-off in semiconductor stocks outweighed support from the corporate earnings season.
The S&P 500 declined 0.69% to 7,691.76, marking its third consecutive losing session. The Nasdaq Composite dropped 1.33% to 26,289.71, while the Dow Jones Industrial Average fell 116.38 points, or 0.22%, to 53,343.40.
Technology led the weakness, with a key semiconductor index falling 5%. Western Digital dropped 7%, Sandisk fell 9%, Marvell Technology lost nearly 8% and Seagate Technology declined more than 9%.
The sell-off came as investors reassessed valuations against a backdrop of higher borrowing costs. US long-term bond yields have risen alongside sovereign yields globally, increasing pressure on growth stocks and other highly valued parts of the market.
Meta Platforms also declined as a federal trial began in California involving claims from 29 US states over safety risks and privacy issues affecting children.
Australian Market Outlook
Australian shares are poised to open modestly lower, with S&P/ASX 200 futures down 24 points, or 0.3%, to 8,976 following weakness on Wall Street.
The August reporting season remains firmly in focus. Breville, Evolution Mining, Fletcher Building, Healius, Magellan Financial, Mirvac, Stockland, Superloop, Santos, The Lottery Corporation, Whitehaven Coal and Yancoal Australia are among the companies scheduled to report on Wednesday.
On the economic front, second-quarter wage data will be released at 11.30am AEST and will be closely watched for its implications for inflation and the Reserve Bank’s interest rate outlook.
RBA Deputy Governor Andrew Hauser will also participate in a fireside chat at the Queensland Futures Institute Annual Regions Summit in Brisbane at 12.45pm AEST.
