S&P 500, Nasdaq Rebound as 10-Year Treasury Yield Tops 5%

According to CNBC, the S&P 500 and Nasdaq fell Monday on AI safety concerns before recovering from their session lows as the 10-year Treasury yield briefly topped 5%, a level not seen since October 2023. Buyers stepped in at that yield, pushing Treasury prices higher and yields lower, while oil prices trimmed earlier gains; West Texas Intermediate crude still settled above $100 per barrel. Market odds of an interest-rate hike at the Federal Reserve's two-day September meeting on Tuesday and Wednesday were above 92%, according to the CME FedWatch tool. AI infrastructure stocks led declines after Anthropic CEO Dario Amodei's weekend essay called for an industry-wide slowdown in the development of new AI models. CrowdStrike and Palo Alto Networks rose about 14% each, while Meta Platforms, Alphabet and Microsoft gained on expectations that a slower AI buildout could reduce capital spending pressure.