Investors flee AI-linked equities and buy bonds as oil jumps on renewed Iran-U.S. clashes and Strait of Hormuz closure.
Tech stocks led a global equity retreat and government bond yields climbed as oil prices surged on escalating Middle East tensions. MSCI’s world index shed 0.31%, while Nasdaq futures dropped 0.90% and S&P 500 futures fell 0.25%.
Brent crude rose 3.0% to $78.22 a barrel, recovering from a recent low of $70.14, after Iran announced the closure of the Strait of Hormuz. U.S. crude added 2.4% to $73.75. The dollar edged lower ahead of Federal Reserve Chair testimony.
Europe’s STOXX 600 slipped 0.10%, with tech stocks down 0.70%. Japan’s Nikkei fell 1.9%, reflecting broader risk aversion amid the geopolitical flare-up.