Tech Stocks Sink as Oil Jumps on US-Iran Jitters: Markets Wrap
(Bloomberg) — Wall Street was rattled by a renewed selloff in some of the world’s largest technology companies, with stocks also falling as a flare-up in geopolitical tensions lifted oil prices.
Those worries drove the S&P 500 to a five-week low, with the benchmark dropping 1.6%. A closely watched gauge of chipmakers fell 3.6%. US crude settled around $90 as President Donald Trump vowed to strike Iran again and scolded the country for delaying talks on an interim peace deal, following overnight attacks that put further strain on a fragile truce.
Warnings of a bubble have been loudest in parts of the market riding the artificial-intelligence wave, where many of the megacaps and semiconductor firms have delivered strong returns.
“It’s often two steps forward, one step back — and recently we’ve had three steps forward,” said Keith Lerner at Truist Advisory Services. “A step back in some of the hotter areas of the market, such as tech, that allows expectations and prices to reset is to be expected and healthy for the long-term sustainability of the bull market.”
Investors are also preparing for a wave of new equity supply unlike anything seen in recent history. A flood of shares from companies seeking capital to fund AI ambitions is raising questions about whether demand will be sufficient to absorb the issuance and what the implications will be for valuations.
Meantime, increased tensions in the Middle East risk derailing intermittent indirect talks between Iran and the US. That means the path to a deal allowing for the revival of the Strait of Hormuz is clouded, stoking concern over inflationary pressures that could make the Federal Reserve raise rates before the year is over.
“Investors had been banking on a quick peace deal in the Middle East,” said Bret Kenwell at eToro. “The trouble is, the longer it takes to find a resolution, the more likely oil prices remain elevated. And the longer energy prices stay elevated, the stickier inflation can get.”
Those concerns overshadowed relatively tame data on consumer prices that had earlier brought a degree of relief to traders. While US inflation accelerated in May to the fastest pace in more than three years, the core measure rose by less than forecast.
It’s possible that things wrap up in the Middle East and shipping gets back to normal over the course of the year, in which case we can see inflation come down over time and the Fed could hold off raising rates, according to Chris Zaccarelli at Northlight Asset Management.
“But if things stay as they are currently, then all bets are off,” he said.
Corporate Highlights:
Oracle Corp. reported quarterly capital expenses that were higher than estimates, raising investor concerns about the profitability of the company’s AI infrastructure business. SpaceX’s initial public offering has attracted demand for more than four times the available shares, according to people familiar with the matter, ahead of the Elon Musk-led rocket, satellite and AI firm stopping taking orders. Super Micro Computer Inc. sank after the company announced a plan to raise $7 billion through a package of equity offerings, a move meant to help pay for the production of more AI servers. Shares of several large trucking companies plunged after Amazon.com Inc. announced an expansion of its shipping service that has already shaken the transportation and logistics sector and unsettled investors. JPMorgan Chase & Co., Barclays Plc and Fifth Third Bancorp won dismissal of a fraud lawsuit filed by holders of notes issued by Tricolor Holdings, the bankrupt subprime auto lender. What Bloomberg Strategists say…
“Traders are taking the escalation in US-Iran tensions with a grain of salt. President Trump’s tendency to escalate to de-escalate is all too familiar for investors by now.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 fell 1.6% as of 4 p.m. New York time The Nasdaq 100 fell 2% The Dow Jones Industrial Average fell 1.9% The MSCI World Index fell 1.4% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1539 The British pound was little changed at $1.3370 The Japanese yen fell 0.1% to 160.55 per dollar Cryptocurrencies
Bitcoin fell 0.6% to $61,730.78 Ether fell 2.1% to $1,625.1 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.54% Germany’s 10-year yield advanced three basis points to 3.08% Britain’s 10-year yield advanced three basis points to 4.93% Commodities
West Texas Intermediate crude rose 2.5% to $90.41 a barrel Spot gold fell 4.4% to $4,075.40 an ounce ©2026 Bloomberg L.P.
