Many technology companies have been spending heavily on AI technology. The potential for higher interest rates can stifle future spending and hurt prices for investments. The Federal Reserve has signalled that it could raise interest rates at least once before the end of the year. Wall Street sees an 85 per cent chance that the central bank will raise its benchmark interest rate this year, according to date from CME Group. That's compared to 60 per cent a week earlier.The yield on the 10-year Treasury slipped to 4.50 per cent from 4.51 per cent late Monday. The yield on the 2-year Treasury fell to 4.20 per cent from 4.24 per cent late Monday. Bond yields remain high, though, amid worries about inflation.Inflation has been heating up throughout the year. The impact from tariffs helped halt and reverse what had been an easing of inflation growth. The US war with Iran quickly pushed energy prices higher, including gas prices. Higher energy costs have also made shipping more expensive for a wide range of goods, and that has been weighing on businesses and households. A report due Thursday with an inflation measure that is preferred by the Fed is expected to show that inflation rose to 4.1 per cent, in May.Oil prices have eased amid negotiations between the US and Iran to end their war. The price for a barrel of US crude for August delivery fell 0.9 per cent to settle at US$73.21. The September delivery price for a barrel of Brent crude, the international standard, fell 0.9 per cent to settle at US$76.80.Prices are still above levels of roughly US$70 per barrel before the war began.All told, the S&P 500 fell 107.33 points to 7,365.46, while the Nasdaq dropped 579.56 points to 25,587.04. The Dow lost 45.87 points to close at 51,666.84.