FX.co ★ US Stocks Drop Sharply

US stocks fell on Tuesday amid growing concerns that tight financial conditions will constrain economic growth. The S&P 500 and the Dow declined as much as 0.7%, while the Nasdaq 100 dropped nearly 2%. Strikes between the US and Iran in the Persian Gulf extended the disruption of energy exports from the region, adding to global inflationary pressures and reinforcing expectations that major central banks may resume interest-rate hikes later this year. In addition, a surge in AI-related corporate debt issuance increased credit supply and pushed yields higher. Technology stocks led the declines under the weight of tighter credit conditions, with Marvell, Intel, Oracle, and Tesla each falling around 3%. Nvidia slipped 2% despite a $35 billion computing deal between Lambda—where the chipmaker holds a significant stake—and Anthropic. Asset managers also came under pressure, with Blackstone and KKR each losing 4%.