Dow Jones Industrial Average futures surrendered an 820-point intraday rally as semiconductor stocks reversed, pressured by rising Treasury yields.
Dow Jones Industrial Average futures surged to a session high near 51,250 before collapsing, erasing roughly 820 points to settle around 50,500. The reversal followed a brief rebound in semiconductor stocks, which failed to sustain momentum after Monday’s 6% gain proved short-lived.
The semiconductor ETF retreated nearly 4% Tuesday, confirming last week’s sell-off as more than capitulation. Rising Treasury yields, spurred by stronger-than-expected Nonfarm Payrolls data, weighed on high-growth sectors reliant on cheap borrowing. The Dow, with minimal exposure to chip stocks, was dragged lower by broader market sentiment.
The index’s inability to hold gains underscores fragility ahead of key inflation data, with traders wary of further Fed tightening. Futures steadied near 50,500 but remained vulnerable to macroeconomic headwinds.