U.S. stocks opened weaker on Monday, with the technology sector facing significant pressure. Concurrently, oil prices rose sharply, strengthening energy-related assets as the market digested the impact of escalating geopolitical tensions in the Middle East.
According to reports, the United States and Iran exchanged military strikes over the weekend, with Iran announcing the closure of the Strait of Hormuz. As one of the world's most critical energy transit routes, the heightened tensions in the region directly threaten oil supply security, driving a significant surge in crude prices. Brent crude futures briefly approached the $80 per barrel mark, while West Texas Intermediate (WTI) crude futures also posted notable gains.
Influenced by these developments, U.S. stocks declined, with the Nasdaq leading the losses as technology and growth stocks faced substantial selling pressure. The market widely perceives that rising geopolitical risks and higher oil prices could reignite inflation concerns, putting pressure on the high-valuation technology sector. Chip stocks were among the hardest hit, with SK hynix, recently listed on the Nasdaq, falling as much as 8%, while memory chip makers like Micron Technology and SanDisk also experienced notable pullbacks.
Furthermore, internal dynamics within the tech industry are drawing close attention. Meta Platforms announced a significant ramp-up in its artificial intelligence infrastructure investment, increasing the scale of its data center project in Louisiana to over $50 billion, with a computing power target of 5 gigawatts. This news underscores the continued massive investment by major technology companies in the AI field.
Comments