US Stocks Plummet Amid Rising Tensions with Iran
The US stock market took a hit on Wednesday due to rising tensions between the US and Iran. The S&P 500 fell 1.6%, the Nasdaq lost 2%, and the Dow Jones eased 1.9%. Rising energy costs and persistent inflation pressures weighed heavily on mega-cap technology stocks.
Super Micro Computer (SMCI) shares dropped 29% after announcing a massive $7 billion financing package to fund its AI infrastructure order backlog. Amazon (AMZN) expanded its less-than-truckload shipping to all businesses as part of an expansion of services offered in its end-to-end logistics unit.
The US consumer inflation increased at its fastest pace in three years in May, boosted by surging energy prices due to the ongoing war in the Middle East. West Texas Intermediate crude futures climbed 3% to top $91 a barrel. The VanEck Semiconductor ETF (SMH) dropped 4%.