Stocks Hit Five-Week Low as Tech Selloff, Oil Rise Weigh – US Market Wrap

Stocks fell, oil rose, yields climbed, and the dollar was steady as tech weakness and geopolitical tensions pressured markets.

Wall Street was rattled by a renewed selloff in major technology companies, sending the S&P 500 down 1.6% to a five-week low, while a key chipmaker gauge dropped 3.6%. US crude settled near $90 after Trump warned of further strikes on Iran and criticized delays in peace talks following fresh attacks that strained a fragile truce.

Concerns over a potential bubble in AI-linked names have intensified, particularly among megacap and semiconductor stocks that have led recent gains. At the same time, a surge in equity issuance tied to AI investment plans is raising questions about whether demand can absorb supply and what it means for valuations.

Rising Middle East tensions also risk disrupting US-Iran talks, clouding prospects for reopening the Strait of Hormuz and adding to inflation concerns that could push the Fed toward rate hikes later this year.