Markets Retreat as Middle East Tensions Weigh on Tech Giants

Brent crude futures are hovering near one-week highs, pushing the S&P 500 energy sector up 0.9%—the strongest performance among the index’s 11 divisions. This uptick serves as a direct response to Iran’s refusal to reopen the Strait of Hormuz, a key artery for global oil supply, unless the U.S. shifts its diplomatic stance. The tension has introduced a layer of unpredictability that is complicating the market's trajectory.

While robust quarterly earnings buoyed the S&P 500 throughout the previous week, the Nasdaq is currently struggling to reclaim its record highs. Traders are now shifting their focus toward upcoming inflation data. These figures are expected to play a decisive role in how the Federal Reserve calibrates future monetary policy, particularly as energy costs continue to exert upward pressure on the broader economic landscape.