FX.co ★ US Stocks Start Week Lower

US equities declined on Tuesday as rising energy prices pressured profit margins and heightened concerns over prolonged higher interest rates. The S&P 500 and Nasdaq 100 each fell 0.4%, while the Dow Jones Industrial Average lost nearly 1%.

Geopolitical tensions in the Middle East intensified market worries. Renewed clashes between the United States and Iran reinforced expectations of disrupted fuel exports from the Persian Gulf. At the same time, attacks by Houthi forces damaged Saudi energy infrastructure, curbing the country’s production capacity and adding further strain to global supply.

Borrowing costs for US corporations also rose, driven in part by hawkish signals from the Bank of Japan and the possibility that Japan may sell US Treasuries to support the yen. Higher yields weighed particularly on credit‑sensitive hyperscalers: Microsoft and Alphabet each fell about 1%, and Amazon slipped 1% ahead of its planned sterling bond issuance.

AI-related companies have increasingly tapped foreign-currency debt markets as US dollar bond markets are already contending with a surge in AI-linked issuance. Bucking the broader tech weakness, Oracle climbed 5% ahead of its earnings report later this week.