Middle East Uncertainty Sends Wall Street into Free Fall
Wall Street's main indexes plummeted on Thursday as uncertainty over the Middle East conflict lifted oil prices and Treasury yields, dampening risk appetite ahead of a crucial US-China summit.
Brent crude prices rose above $100 a barrel after US and Iran leaders exchanged barbs at the UN General Assembly this week. A potential ban on US diesel exports added to investor caution.
Technology stocks led declines on the S&P 500, with chipmakers Nvidia NVDA.O, Broadcom AVGO.O, and Micron MU.O slipping over 1% each. Oracle ORCL.N lost 5.5% after a report said it sent a 'force majeure' notice to a New Mexico data center.
A rise in Treasury yields, with the 30-year bond US30YT=RR reaching its highest since 2004, pressured riskier assets as investors priced in the likelihood of a long war and higher borrowing costs. Analysts said faith in the AI trade, which powered the Nasdaq to record highs earlier this week, has limited losses among riskier assets.