
U.S. Stocks declined on Tuesday as investors rotated out of growth and AI-related names into more cyclical stocks, dragging the S&P 500 down 0.9% and the Nasdaq-100 1.7%, while the Dow slipped 0.2% .
Technology stocks led the declines, with big names like Nvidia and Microsoft all falling sharply. AI-linked private credit names also came under pressure.
In Asia, tech stocks fell sharply on Wednesday, tracking losses in U.S. software names as fears grew that artificial intelligence could disrupt traditional software business models.
In the commodities market, oil prices rose further on Wednesday, driven by escalating Middle East tensions and a sharp drop in U.S. crude inventories, which reignited a geopolitical risk premium in the market.
The rally was sparked by U.S. forces shooting down an Iranian drone near the aircraft carrier Abraham Lincoln.
Brent crude climbed to $68 per barrel and WTI to about $63.80, extending gains after a near 2% jump the previous day. Further support came from supply data showing U.S. crude inventories fell by more than 11 million barrels last week, the largest draw since June, signaling strong demand.
Gold held strong gains above $5,050, hovering near its weekly high, as safe haven demand picked up for a second day. The rally was driven by renewed U.S.–Iran tensions, pushing investors toward defensive assets.
Additional support came from expectations of lower U.S. interest rates, which capped the U.S. dollar’s recent rebound and benefited the precious metal. Gold has now rebounded more than $650 from recent lows near $4,400, with traders awaiting U.S. ADP employment data and the ISM Services PMI for the next directional cue.
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