Stocks sold off Tuesday with borrowing costs around the world near multiyear highs, as investors fret over heavy fiscal spending and inflation. The 30-year U.S. Treasury yield rose as high as 5.337%, its highest intraday level since 2007; Japanese long-dated yields ended the day at their highest level since at least 2006.

One factor pushing up yields: the capital‑hungry AI industry’s huge appetite for debt, which puts it in competition with traditional nation‑state borrowers. Equities also struggled, with the Nasdaq down 1.3% on the day. Chip stocks were hit hard, with the PHLX Semiconductor index down more than 5% and some of its components (Intel, Marvell, ARM Holdings, Coherent, and Teradyne) off more than that. Renewed tensions in the Middle East are also weighing on markets.

Iran fired two ballistic missiles toward the strait on Tuesday, triggering air defenses in the United Arab Emirates, according to that country’s Ministry of Defense. Earlier Tuesday, an Iranian attack hit a bulk carrier in the strait east of Oman. The attacks came after a 60‑day truce between the U.S. and Iran expired yesterday with few signs of progress towards a permanent deal to replace it. President Trump wrote this morning that no talks are planned with Iran. Brent crude oil prices edged higher to $91.02 a barrel.