U.S. stocks closed lower on Tuesday, led by a sharp retreat in chipmakers and broader weakness in AI-linked shares as long-term bond yields stayed near multi-year highs. The S&P 500 fell 0.7%, the Nasdaq lost 1.7% and the Dow shed 116 points. Yields eased from recent peaks but remained elevated, with inflation risks and surging bond issuance by AI companies feeding uncertainty over term premia, the extra compensation investors demand for holding longer-dated debt. Inflation worries were amplified by rising energy prices after the United States signaled a prolonged blockade of Iranian tanker exports. Chipmakers tied to the AI trade posted steep losses, including Nvidia down 2.3%, Broadcom off 3.2%, Micron down 7%, AMD lower by 4.3%, Intel down 6.6% and Sandisk off 9%. Other major AI companies also weakened, with Meta down 4.4%, Tesla off 0.7% and Oracle lower by 2.7%. Credit-sensitive financial stocks also came under pressure, with Goldman Sachs down 1% and Citigroup off 0.6%, while Home Depot slipped 0.1% despite beating earnings estimates amid elevated borrowing and housing costs.