Tech Stocks Shake New York Market Amid High Oil Prices and Iran Risks

On Tuesday, U.S. equity markets closed lower. The Dow Jones Industrial Average fell 0.36% to 49,310.32, the S&P 500 slipped 0.41% to 7,108.40, and the Nasdaq Composite dropped 0.89% to 24,438.50.

The main headwinds were heightened Middle East tensions and surging oil prices. Brent crude briefly topped $107 a barrel, stoking inflation worries and driving the 10-year U.S. Treasury yield toward 4.3%, which weighed on growth stocks. Still, data—including weekly initial jobless claims of 214,000 and an April S&P Global U.S. Composite PMI of 52.0—pointed to modest expansion rather than a broader economic slowdown.

In corporate earnings, technology names led the decline. IBM and ServiceNow each plunged nearly 10% after warning of slowing software growth and delays in Middle East contracts, while Tesla fell over 3% amid an aggressive capital-expenditure plan. By contrast, Texas Instruments surged more than 10% on stronger-than-expected results and upgraded guidance, underscoring the defensive appeal of select semiconductor shares.

On the Federal Reserve front, this was the first trading day following nominee Kevin Warsh’s remarks on maintaining policy independence, yet market expectations for the rate path remained largely unchanged. Investors are now repositioning in technology and energy ahead of next week’s Federal Open Market Committee meeting, potential developments in Iran, and additional big-tech earnings—preparing for heightened volatility.