US Stocks Plunge as Tensions with Iran Escalate
The US stock market took a hit as major indexes declined due to increased tensions between the US and Iran. The Dow Jones Industrial Average fell 0.70% to 53,185.90, while the Nasdaq Composite Index dropped 0.12% to 26,370.89. This decline was driven by cloud vendors leading the losses.
However, some tech stocks bucked the trend with Tesla standing out as it rose 5.51%. The company announced a new budget version of its Model 3 in Hong Kong and Macao, further reducing the entry price. Other notable gainers included Nvidia, Broadcom, and SpaceX.
The Philadelphia Semiconductor Index also saw an increase of 0.57% to 11,535.05 points, with 18 of its constituents advancing and 12 declining. Memory stocks surged in late trading, with SanDisk rising 5.50%, Micron Technology up 2.77%, and SK Hynix up 2.20%.
OpenAI's advertising business reached a $1 billion annualized revenue run rate, while Nvidia announced a $3.5 billion investment in MediaTek to expand its AI chip ecosystem. The US Treasury yield topped 4.75%, hitting a new high since January 2025, driven by rising oil prices and market expectations for Fed rate hikes.