Finance

Tech benchmarks struggled as heavyweights like Nvidia and Advanced Micro Devices saw price declines ahead of pivotal quarterly earnings reports. The materials sector also underperformed significantly, dropping 2.1% in late trading as a decline in gold prices weighed heavily on major mining stocks.

Financial markets were highly reactive to shifting geopolitical signals, including the cancellation of planned military strikes on Iran and ongoing uncertainty regarding the Strait of Hormuz. These tensions, combined with signs of reviving inflation, have led traders to price in a higher probability of future Federal Reserve interest rate hikes.

Home Depot reported solid first-quarter results, yet its stock faced pressure as high interest rates and elevated housing prices continued to dampen consumer demand for large remodeling projects. Conversely, companies like Walmart and Target saw modest gains as investors positioned themselves ahead of upcoming retail earnings reports due later this week.