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Semiconductor Stocks Slide as Bond Yields Weigh on Tech Rally

Chip stocks retreated Wednesday as rising bond yields pressured technology equities for a third consecutive session. Nvidia Corp. declined ahead of quarterly earnings, erasing earlier gains as investors reassessed valuations following this year's strong rally. The selloff reflected mounting concerns that inflation pressures could derail the technology sector's momentum. Global bond yields have climbed on inflation worries, prompting market participants to reconsider equity prices after a record-breaking advance. The semiconductor trade, which has attracted significant investor capital, faced particular headwinds from the yield environment. Analysts cautioned that geopolitical risks, including Middle East tensions, have fueled inflation expectations and bond market volatility. Higher borrowing costs and valuation concerns threaten to extend the current pullback in chipmakers.