Stocks Slip as Chipmakers Fall and Oil Surge Stokes Inflation Fears – US Market Wrap
US stocks declined as weakness in semiconductor shares weighed on the market, while oil prices jumped and bonds sold off amid escalating conflict in Iran and the broader Middle East. Bitcoin also retreated.
The S&P 500 pared earlier losses but still finished lower, with the majority of its components declining. A key index of semiconductor companies fell 1.2% following reports the US is considering requiring permits for sales of artificial-intelligence chips.
The US-Israeli conflict with Iran entered its sixth day with little sign of easing, prolonging the surge in energy prices. US crude settled near $81 a barrel as the fighting disrupted shipments to major buyers and prompted China — the world’s largest importer — to move toward conserving fuel supplies.
Energy market volatility has pushed policymakers to consider potential responses. The Trump administration is reportedly reviewing options to address rising oil and gasoline prices as the conflict intensifies.
Bond markets also remained under pressure. The yield on 10-year Treasuries rose for a fourth consecutive session, climbing four basis points to 4.13%, as investors worried that higher energy prices could fuel inflation and complicate the Federal Reserve’s ability to cut interest rates.
Labor-market data released ahead of Friday’s payrolls report showed jobless claims holding near some of the lowest levels of the past year, reflecting a subdued pace of layoffs. Economists expect the upcoming employment report to show hiring slowed from January’s strong pace while the unemployment rate remained steady.
The S&P 500 fell 0.6% on the day. The dollar gained 0.4%. Bitcoin declined alongside broader risk assets.
