Tech Stocks Slump Amid Oil Price Hike as Inflation Fears Linger
US equities slid for the second consecutive day on Tuesday as technology and communication services shares retreated. The S&P 500 fell 0.32% to 7,728.20, while the Nasdaq Composite dropped 0.60% at 26,445.45. Heavyweights Alphabet and AppLovin led declines in communication services, with losses of 3.8% and nearly 6%, respectively.
Nvidia's early gains were wiped out after it unveiled a partnership with six large asset managers to mobilize over $500 billion for AI infrastructure, leaving the stock near flat. Apple fell by more than 1%. Crude benchmarks rose amid tensions around the Strait of Hormuz, with US West Texas Intermediate settling at $83.20 a barrel and Brent reaching $88.91.
Market focus remains on inflation trajectory ahead of Wednesday's consumer price index and Thursday's producer price index. The prints follow a softer US jobs report, which complicated the Federal Reserve's policy path. Some strategists argue that moderating inflation alongside slowing hiring strengthens the case for holding rates steady, while others warn that sticky services inflation could delay any easing.