Midday declines in major U.S. indexes follow rising crude prices and supply disruption fears amid Middle East tensions.
The S&P 500 fell 0.57% to 7,566.40 at midday, retreating from Monday’s record close as geopolitical risks and higher oil prices weighed on sentiment. The Nasdaq and Dow Jones declined 0.84% and 0.85%, respectively, to 26,866.56 and 50,873.86.
WTI crude rose 2.5% to $96.05 after warnings of potential supply disruptions in the Strait of Hormuz. Treasury yields edged higher, while AI-related stocks showed mixed performance, with Marvell Technology extending gains and Nvidia slipping.
Investors also monitored inflation data and jobs reports, which raised expectations of a Federal Reserve rate hike this year. Higher borrowing costs could further pressure equities amid elevated valuations.