Finance

Technology stocks led the broader market decline, particularly in the software industry, which saw heavy selling after disappointing quarterly reports from ServiceNow and IBM. These losses pulled the tech-heavy Nasdaq down nearly 1%, despite individual gains in some semiconductor companies driven by ongoing artificial intelligence demand.

Crude oil prices spiked significantly, with Brent crude rising over 4% to surpass the $106 per barrel mark. Market volatility was fueled by Iranian military actions in the Strait of Hormuz and the collapse of planned diplomatic negotiations, renewing global supply chain and inflation concerns.

The yield on the 10-year U.S. Treasury note rose to approximately 4.32%, marking its fourth consecutive day of increases. Rising energy costs and the stalled peace process in the Middle East have reignited fears that the Federal Reserve may maintain elevated interest rates for a longer period to combat persistent inflation.

Cryptocurrency markets showed resilience as Bitcoin held above $77,000, testing major psychological resistance near the $80,000 threshold. While some investors view digital assets as a safe haven similar to gold during geopolitical uncertainty, analysts warned of diverging momentum between Bitcoin and smaller altcoins.

Tesla shares fell more than 3% after its earnings report revealed a substantial jump in projected spending for the year. Although the company's quarterly results beat analyst expectations, investors expressed concern over the high costs associated with building new factories for robotics and autonomous driving technology.