US Stocks Plummet as Energy Prices Surge and Tensions Rise

US stocks got off to a shaky start on Tuesday as energy prices surged, casting a shadow over profit margins and potentially prompting higher interest rates.

The S&P 500 and Nasdaq 100 dropped by 0.4%, while the Dow Jones plummeted nearly 1%.

New tensions between the US and Iran exacerbated concerns about disrupted oil exports from the Persian Gulf, with Houthi attacks on Saudi energy infrastructure further denting their capacity.

Additionally, hawkish signals from the Bank of Japan led to increased borrowing costs for US companies.

Credit-sensitive hyperscalers like Microsoft (1% drop), Alphabet (1%), and Amazon (1% ahead of its bond offer) felt the pinch.