U.S. stocks fell Tuesday as a worldwide bond selloff pushed long-term yields to their highest levels in years, putting heavy pressure on chip stocks. The Dow Jones Industrial Average dropped 116.38 points (0.22%) to 53343.40, the S&P 500 lost 53.30 points (0.69%) to 7691.76, and the Nasdaq Composite declined 355.20 points (1.33%) to 26289.71. The 30-year Treasury yield hit its highest level since 2007 early Tuesday.

Analysts said the bond selloff reflects inflation fears from rising energy prices, growing government deficits, and the artificial intelligence industry’s voracious appetite for debt. Barclays noted that the scale and maturity of AI-related corporate borrowing has changed this year, with big tech issuing vast quantities of long-dated bonds to fund data centers and chip purchases. German and French long-dated yields hit their highest closing levels since 2011 and 2008, respectively, while Japanese yields approached all-time highs.

The PHLX Semiconductor Index fell 5%, with all 30 components in the red. Notable declines included Coherent and Credo Technology each down 13%, Marvell down 7.8%, ARM Holdings down 6.7%, and Intel down 6.6%. Western Digital fell 7.4% and Super Micro Computer dropped 2.3%. The 60-day U.S.-Iran truce expired Monday with little progress toward a permanent deal; President Trump said no talks with Iran are planned and posted an image of the Strait of Hormuz labeling it “New U.S. Territory.” Brent crude hovered near $91 a barrel.