Shares of technology companies fell sharply as a spike in Treasury yields weighed on risk appetite.

The tech sector can be particularly sensitive to moves in bond yields because many investment portfolios rebalance high-risk holdings when low-risk Treasurys sell off.

Chinese search-engine giant Baidu snapped a three-quarter run of falling revenue, posting a rise for the first three months of the year as it develops new growth drivers in artificial intelligence.

There's a growing sense among tech-industry followers that Chinese firms have closed the gap on Silicon Valley when it comes to AI.

Shares of U.S. chip maker Nvidia remain roughly 5% for the year to date.

A Texas data center that the startup Crusoe is building for OpenAI has secured $11.6 billion in new funding commitments, expanding a site that is core to increasing the ChatGPT maker's long-term computing capabilities.

Separately, Jony Ive, a chief architect of the iPhone, and his design firm were reportedly given authority over creative and design control at OpenAI, where they will develop consumer devices and other projects for the influential company.

Google owner Alphabet rose after some analysts said its newly revealed AI strategy was promising.

"These offerings [will lead] to incremental sources of consumer utility, commercial query volume, and monetization for Google," said analysts at brokerage Morgan Stanley, in a note to clients.

"Expanding AI mode, personalization, and agentic capabilities to all U.S. users" was a significant step forward, the Morgan Stanley analysts said.

Wolfspeed shares plunged after The Wall Street Journal reported the embattled maker of chip wafers could file for bankruptcy within a matter of weeks.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

May 21, 2025 18:54 ET (22:54 GMT)

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