U.S. technology shares led declines in major stock indexes on Tuesday as surging oil prices and growing expectations of higher U.S. interest rates dampened investor sentiment.
The Nasdaq 100, a bellwether for tech stocks, fell 0.9% to 29,184 points in early trading, extending losses from the previous session. The S&P 500 slipped 0.4% to 7,654 points, while the Dow Jones Industrial Average declined 0.4% to 53,002 points. Tech weakness contrasted with Friday's mixed performance, when the Nasdaq 100 closed modestly higher despite broad market declines.
The upward pressure on oil prices contributed to concerns over persistent inflation, which has kept rate-hike expectations elevated. Analysts at E*Trade noted that unexpectedly strong August jobs data could reinforce bets on a Federal Reserve rate increase, as robust employment figures may delay anticipated policy easing. The closely watched U.S. nonfarm payrolls report is due Friday.
Geopolitical risks in the Middle East also weighed on markets after reports of attacks on crude oil tankers in the Strait of Hormuz dashed hopes of imminent easing of shipping restrictions. "The recent optimism about a swift reopening of the Strait of Hormuz has taken a significant hit," said Carsten Fritsch, commodity analyst at Commerzbank.
Among individual stocks, Fervo Energy surged nearly 25% after The Wall Street Journal reported a power supply agreement with Google’s Alphabet unit. Nio’s U.S.-listed shares fell 4% despite reporting largely flat vehicle deliveries for August compared with July. GoPro shares extended gains, rising over 50% and trading above $1 for the first time since early June, following the company’s definitive merger agreement with privately held Starman Optical.
