Markets Waver as Dollar Strength Challenges Tech Rally

The tech sector struggled to find a floor, extending Tuesday’s losses as traders braced for Micron’s quarterly results. While the S&P 500 and Nasdaq retreated under the weight of valuation concerns, the Dow managed a modest climb, supported by strength in the industrial, materials, and consumer discretionary sectors. Conversely, energy stocks faced sustained pressure, tracking crude oil prices toward four-month lows.

Global currency markets reflected this shifting landscape, with the U.S. dollar climbing for the third consecutive day. This upward momentum weighed heavily on the euro, as markets priced in a lower probability of aggressive rate hikes from the European Central Bank. Gold prices were not spared, sliding to a seven-month low as the dollar’s dominance eroded demand for the precious metal.