U.S. stocks slipped by midday Tuesday as a sharp unwind in optical and AI-hardware names dragged the Nasdaq 100 down 1.7%, while the 30-year Treasury yield climbed to 5.30%, its highest since 2007. Fabrinet cratered 19.9% even after topping quarterly revenue and earnings estimates, and the decline spread across Applied Optoelectronics, Coherent, Credo Technology, Lumentum, Ciena, Marvell, Corning, Keysight, SanDisk and Micron. The S&P 500 fell 0.5% to 7,703.78, the Dow Jones Industrial Average slipped 0.2% to 53,371.23 and the Russell 2000 lost 0.9% to 3,029.18. Oil prices rose, with West Texas Intermediate up 1.4% to $85.67 a barrel and Brent up 1.0% to $91.75 after President Donald Trump said on Truth Social there are no "scheduled" talks with Iran and that the naval blockade remains in force, a narrative rejected by Iranian officials and state media. Gold fell 1.2% to $4,361 an ounce as firmer real yields and a steadier dollar weighed on bullion. Sector performance pointed to rotation rather than a broad panic, with healthcare, energy and consumer staples leading while technology lagged badly. Markets now expect the Federal Reserve to hold rates steady in September and no longer fully price a year-end increase, reflecting growing concern over term premium (extra yield investors demand for longer maturities) and heavy Treasury issuance rather than fresh bets on tighter Fed policy.