US Stocks Fall as Treasury Yields Rise

US stocks fell last week as Treasury yields rose, with the S&P 500 dropping 1.4%. Semiconductor shares plunged over 5%, while banks lost 4% and industrials fell 3%. The 10-year Treasury yield climbed 4 basis points to 4.74%, exceeding stocks' 3.4% free cash flow yield. Treasury Secretary Scott Bessent expanded buybacks of illiquid government debt to curb long-term rates, drawing mixed reactions. Tech firms seek about $2 trillion for AI computing infrastructure, with a third of recent S&P 500 profit growth tied to AI builders. Rick Bensignor warned that weak Nvidia results Wednesday could trigger caution. Despite 5-6% nominal GDP growth, high rates pressure other sectors. July housing starts fell 12.4%, and Walmart reported its weakest quarterly comparable sales growth since 2020. The S&P 500's price-to-free cash flow ratio neared a multi-year high just below 30 as corporations spend heavily on the tech race.