Wall Street stocks fell to their lowest level in two weeks

Wall Street's Main Indices Hit Two-Week Lows as Tech Stocks Plunge

Wall Street's major indices fell to their lowest levels in two weeks on Tuesday, primarily driven by a decline in large technology company stocks. Markets faced additional pressure from diminished expectations of reaching a peace agreement between the United States and Iran, which sustained higher oil prices and kept Treasury bond yields at elevated levels.

Technology and semiconductor company stocks were hit particularly hard. The Philadelphia Semiconductor Index fell 5.4%, and had the decline continued, the sector's total market capitalization would have decreased by more than $680 billion.

Significant declines were recorded in data storage companies SanDisk and Western Digital, as well as memory chip manufacturer Micron Technology. The Roundhill Memory ETF fell 7.9%.

Nvidia, a leading representative of the artificial intelligence sector, lost 2.4%, while Meta Platforms' stock declined by 3%. The S&P 500's information technology sector fell 2.1% and became the largest negative factor for the index.

One of the main reasons for pressure on technology stocks is the high yield on bonds. The yield on 30-year U.S. Treasury bonds reached its highest level since 2007, while the yield on 10-year bonds remained close to its highest level since January 2025. High yields reduce the present value of future technology company earnings and make borrowing more expensive for companies.

Meanwhile, geopolitical tensions created additional pressure on the oil market. Brent crude oil prices rose 1.2% and approached a three-week high. The increase accelerated after Iran announced it could shift its military position to "full offensive" mode, while Washington ruled out extending a ceasefire agreement.

Higher oil prices, conversely, benefited energy company stocks. The S&P 500's energy sector rose 1.5% and came very close to its historical maximum.

According to Luqman Otunga, head of market research at FXTM, the addition of geopolitical risks creates another layer of uncertainty in the market, and investors should prepare for increased volatility across equity, currency, commodity, and bond markets.