Growing fiscal deficits, inflation fears and massive AI spending push up borrowing costs globally. The 30-year U.S. Treasury yield is hovering near 5.3% after hitting a 19-year intraday high; Japanese long-dated yields are close to a record high. One factor: the capital-hungry AI industry’s huge appetite for debt, competing with nation-state borrowers.

Equities are struggling, with the Nasdaq down over 1%. Chip stocks are getting hit hard, with the PHLX Semiconductor index down more than 5% and components including Intel, Marvell, ARM Holdings, Coherent, and Teradyne down 7% or more.

Renewed tensions in the Middle East weigh on markets. An unknown projectile struck a cargo ship in the Strait of Hormuz overnight after a 60-day U.S.-Iran truce expired. Trump wrote that no talks are planned with Iran. Brent crude oil prices hover around $91 a barrel.