Tech Stocks Fall as 10-Year Yield Hits 4.35 Percent and Brent Crude Tops $82

The move followed a 12-basis-point rise in the benchmark Treasury yield over two sessions and a 3.8 percent gain in front-month Brent, data from the Treasury yield curve and ICE futures show. Growth stocks with extended duration cash flows absorbed the brunt, while value and energy names posted modest gains. The shift aligns with higher real yields reducing the present value of distant earnings that dominate AI-related multiples.

Primary records from the Federal Reserve's H.15 release and CME FedWatch pricing indicate markets now assign a 62 percent probability to no rate cut at the September FOMC meeting. This repricing coincides with OPEC+ supply discipline and stronger-than-expected US gasoline demand data released last week. The combination raises input costs for manufacturers while simultaneously increasing the discount rate applied to technology earnings.

Portfolio adjustments documented in Tuesday's ETF flows show $2.1 billion exiting semiconductor and software funds, the largest single-day outflow since May. Energy and materials ETFs recorded net inflows of $680 million. These reallocations reflect a direct trade-off between higher financing costs and commodity price support rather than any shift in corporate fundamentals.

Next data points include the August PCE release on 30 August and the Treasury's quarterly refunding announcement on 31 August. Either print could extend the yield move or trigger a partial reversal depending on inflation persistence and supply expectations.