DAX 40 slips as European and US AI-linked industrial shares fall on yields

European and U.S. stocks fell on August 18 as a global bond selloff pushed long-term yields near multi-year highs, oil prices strengthened and investors reassessed AI-related spending commitments. In Europe, the STOXX Europe 600 fell 0.6% to 652 and the Euro STOXX 50 lost 0.9% to 6,473, with Germany's DAX 40 under pressure. In the United States, the Dow fell 116.38 points to 53,343.40, the S&P 500 dropped 53.30 points, or 0.69%, to 7,691.76, and the Nasdaq Composite slid 355.20 points, or 1.33%, to 26,289.71, while the Philadelphia Semiconductor Index sank 4.98% to 11,992.46. The move came as the 30-year Treasury yield reached about 5.34%, its highest since June 2007, the 10-year hovered around 4.70%, and a Wall Street Journal analysis said nine top tech companies had about $3 trillion of mostly AI-related off-balance-sheet commitments. Oil prices also rose, with WTI settling at $84.94 a barrel and Brent near $91, as comments from President Donald Trump and Iranian Parliament Speaker Mohammad Bagher Ghalibaf kept uncertainty around the Strait of Hormuz in focus.

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