Tech Selloff Drags U.S. Markets Lower as Energy Stocks Rally on Crude Rebound

The Nasdaq plunged 1.8% amid steep declines in Oracle and chip stocks, while energy shares surged after Trump's Venezuela oil blockade lifted crude prices.

The tech-heavy Nasdaq tumbled 418.14 points (1.8%) to 22,693.32, the S&P 500 slumped 78.83 points (1.2%) to 6,721.43 and the Dow slid 228.29 points (0.5%) to 47,885.97.

U.S. stocks saw a sharp pullback through the day as renewed weakness hit the technology sector, dragging the Nasdaq lower. Oracle plunged 5.4% to a six-month low after reports that Blue Owl Capital would not fund its $10 billion Michigan data center project, though Oracle said the plan remains on track. Major chipmakers including Nvidia, Broadcom, and AMD also slumped, with the Philadelphia Semiconductor Index down 3.8% and hardware stocks tumbling over 3%.

 

In contrast, energy stocks outperformed as crude oil prices rebounded from early-2021 lows. The surge followed President Donald Trumps order to blockade sanctioned Venezuelan oil tankers after designating Nicolas Maduros government a foreign terrorist organization, fueling supply concerns and lifting oil-related shares.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index rose by 0.3%, while China's Shanghai Composite Index jumped by 1.2%. The major European markets turned in a mixed performance on the day while the U.K.'s FTSE 100 Index advanced by 0.9%, the French CAC 40 Index fell by 0.3% and the German DAX Index slid by 0.5%.

In the bond market, treasuries showed a lack of direction over the course of the session before closing roughly flat. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, crept up by less than a basis point to 4.15%.

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