US stock indices closed lower on Tuesday amid a selloff in chipmakers and elevated bond yields. The S&P 500 fell 0.7%, the Nasdaq lost 1.7% and the Dow shed 116 points. Long-term yields slipped from recent peaks but remained near multi-year highs as inflation risks and surging bond issuance by AI companies fueled uncertainty over term premia. Inflation concerns were magnified by further increases in energy prices as the US signaled a prolonged blockade of Iranian tanker exports. Chipmakers tied to the AI trade posted sharp losses, with Nvidia down 2.3%, Broadcom shedding 3.2%, Micron losing 7% and AMD retreating 4.3%. Intel tumbled 6.6%, while Sandisk sank 9%. Other major AI companies also closed lower, with Meta losing 4.4%, Tesla down 0.7% and Oracle shedding 2.7%. Credit-sensitive financial stocks came under pressure, with Goldman Sachs (-1%) and Citigroup (-0.6%) closing lower. Home Depot shed 0.1% despite beating earnings estimates amid elevated borrowing and housing costs.