Geopolitical risks drive equities lower, with energy stocks rising and tech shares under pressure amid oil price surge.
U.S. stocks fell sharply at midday as escalating Middle East tensions rattled markets. The Dow Jones Industrial Average slid 1.51% to 52,126.81, while the S&P 500 and Nasdaq declined 0.91% and 0.92%, respectively. Gold prices dropped 1.87% to $4,030.68, and the 10-Year Treasury yield rose to 4.59%.
Energy stocks bucked the trend, gaining as West Texas Intermediate crude jumped 7.85% to nearly $76 a barrel. Tech shares faced headwinds, with Intel Corporation down over 5% and Micron Technology struggling to recover recent losses. Navitas Semiconductor Corporation plunged 9% after a patent lawsuit filing.
Investors adopted a risk-off stance amid renewed U.S.-Iran violence, overshadowing corporate earnings. The sell-off extended across most sectors, with only energy and consumer defensive stocks posting gains.