Tech Sector Plunge Drags Down U.S. Stocks Amid Bond Yield Surge

The Dow Jones Industrial Average fell 198 points as risk-off sentiments prevailed on Wall Street, with Disney, Pfizer, and Walgreens stocks sinking to their lowest levels in over a year. Additionally, mega-cap tech stocks, including Apple and Nvidia, lost around $240 billion in market capitalization. The slide was triggered by concerns over sticky inflation, as indicated by the Institute for Supply Management's U.S. services index. Investors are wary of the Federal Reserve potentially keeping interest rates higher for longer. The upcoming release of August's consumer price index reading will provide further insight into the Fed's battle against inflation.