FX.co ★ US Stocks Fall Amid Rising Energy Prices

US stock indices finished lower on Tuesday as rising energy prices pressured the outlook for corporate profit margins and heightened the risk of further interest-rate increases. Investors also remained cautious ahead of key inflation data due later this week. The S&P 500 declined 0.6%, the Nasdaq slipped 0.3%, and the Dow Jones Industrial Average fell 628 points.

Geopolitical tensions added to market nerves. Fresh strikes involving the US and Iran intensified worries about prolonged disruptions to fuel exports from the Persian Gulf, while Houthi attacks on Saudi energy infrastructure curtailed the country’s production capacity.

Financing conditions for US companies tightened as well. Yields moved higher following hawkish signals from the Bank of Japan and expectations that Japanese authorities may sell US Treasuries to support the yen. Higher borrowing costs weighed particularly on credit‑sensitive software names: Microsoft dropped 1.1%, Palantir slid 2.3%, and Amazon eased 0.6% ahead of its planned sterling‑denominated bond issuance.

AI-focused companies have increasingly tapped foreign‑currency debt markets as US dollar bond issuance swells on the back of AI‑related financing needs. Against this backdrop, Oracle bucked the broader tech weakness, rising 2.4% ahead of its earnings report later this week.