US-Iran Hostilities Spark Selloff on Wall Street

The US-Iran hostilities sent shockwaves through Wall Street on Tuesday, causing stocks to plummet. The Dow-30, S&P 500, and Nasdaq Composite all fell, with the Nasdaq dropping by 1% to close at 26,099.77. The Dow Jones Industrial Average shed 0.8%, while the S&P 500 lost 0.7%. The sharp decline was largely driven by rising oil prices and long-dated US Treasury yields.

The price of crude oil futures surged by as much as 6.1% to a $90.97-barrel session high, sparking inflation fears that drove up the U.S. 10-Year Treasury Notes Yield to its highest level in 21 months at 4.8%. Higher interest rates can be detrimental to Big Techs, which often rely on borrowing money for AI buildout.

Several tech stocks took a hit, with Micron Technology, Sandisk, Intel, Marvell, and Nvidia falling by smaller amounts. Meanwhile, British artificial-intelligence firm Rezolve AI lost 17.3% after reporting a big year-over-year increase in its H1 loss.