Market turbulence intensifies ahead of Fed meeting: US Treasury yields hit highest since 2007, AI stocks sold off.

BlockBeats news, September 15 — The Federal Reserve will launch a two-day policy meeting this Tuesday, with the market expecting a 25 basis point rate cut on Wednesday, and the probability of another rate cut in December has now risen to 75%. However, with inflation still above the 2% target, Fed Chair Kevin Warsh faces significant policy pressure.

At the same time, financial markets are experiencing multiple sharp fluctuations. The 10-year U.S. Treasury yield rose to its highest level since 2007 on Tuesday morning and broke through the 5% mark during Monday trading. Continued selling of U.S. Treasuries further increases pressure on the Fed to control inflation.

AI trades have also seen a clear reversal. Influenced by warnings from several AI industry giants that the pace of model development needs to slow, AI-related stocks fell sharply on Monday, with popular AI assets such as Nvidia hit by selling. U.S. President Trump rarely intervened during the All-In Summit event, calling Nvidia CEO Jensen Huang and saying market concerns about AI are "all a scam," but still failed to prevent U.S. stocks from weakening late in the session.

In addition, international oil prices continued to rise, with Brent crude and WTI futures both standing above $100 per barrel. Attacks by Yemen's Houthi armed group on Saudi Arabia and on ships in the Strait of Hormuz heightened concerns about supply disruptions. The linkage between oil prices and U.S. Treasury yields also reached its strongest level since 2019, while U.S. stock futures edged lower after broad weakness in Asian markets.