Tech Rout and Surging Oil Prices Trigger Market Sell-Off

The broader market sell-off saw both the S&P 500 and the Dow Jones Industrial Average retreat by more than 1%. Market sentiment soured as Brent crude oil futures surged past $100 a barrel, a move driven by escalating Middle East tensions and persistent supply chain anxieties. This climb in energy prices stoked fresh fears of sustained inflation, putting upward pressure on bond yields and cooling appetite for risk.

Signs of distress were visible in the CBOE Volatility Index, which climbed as participants braced for further turbulence. Matt Miskin, an analyst at Manulife John Hancock Investments, noted that the spotlight now shifts to the upcoming Federal Reserve policy meeting, where officials face the challenge of navigating these mounting economic headwinds. The heavy capital expenditure on artificial intelligence, once a driver of market optimism, is now under intense scrutiny as Alphabet and Tesla failed to meet investor expectations.