US stock markets decline amid tech weakness and Middle East tensions

Major US indices closed lower as investors reacted to geopolitical tensions in the Middle East and weakness in large-cap technology stocks. The Dow Jones Industrial Average fell 0.34%, the Nasdaq Composite dropped 0.60%, and the S&P 500 declined 0.32%. In contrast, the Russell 2000 index saw a slight increase of 0.35%, indicating a divergence between large-cap and small-cap performance.

Market sentiment was pressured by renewed uncertainty regarding the Strait of Hormuz, as Iran reaffirmed its stance on reopening the waterway. This led to a rise in oil prices, with WTI crude futures climbing above $83 per barrel. Additionally, investors maintained a cautious stance ahead of the release of US Consumer Price Index (CPI) and Producer Price Index (PPI) data.

In the technology sector, Alphabet and AppLovin experienced significant declines, while Nvidia saw its early gains fade. The cryptocurrency market also exhibited volatility; Bitcoin fluctuated around the $63,400 level after briefly exceeding $64,400, failing to maintain upward momentum despite US inflation data meeting expectations.