Big tech stocks dropped in overnight trading, after the market’s rally stalled last week as oil prices rose sharply amid the impasse in the war with Iran.
Tesla and Nvidia fell 2%; Meta, Amazon, and Alphabet fell 1%.
Crypto stocks also fell in overnight trading. Strategy fell 5%; Circle, MARA Holdings, BitMine, and Figure Technology Solutions fell 4%; Riot Platforms, Coinbase, IREN, Cipher Mining, CleanSpark, TeraWulf, Hut 8, and Robinhood fell 3%.
Oil prices shot higher Friday as President Donald Trump ended his trip to China with no apparent breakthroughs. West Texas Intermediate crude for June delivery rose above $105 a barrel Friday, while Brent for July delivery, the global benchmark, closed above $109 a barrel after rising 8% on the week.
While the cease-fire in the Persian Gulf appears to be largely holding, cracks are starting to appear as the impasse over the Strait of Hormuz continues. The Associated Press reported Sunday that Israel is coordinating with the U.S. over a possible resumption of airstrikes against Iran, and in a social-media post Sunday, Trump warned Iran to agree to a peace deal, or else. “The Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” he said. Diplomats are reportedly continuing to work on an agreement, but the two sides still appear far apart.
Also on Sunday, a drone strike — suspected to be either Iranian or from an Iranian-backed militia — caused a fire near a nuclear power plant in the United Arab Emirates. The UAE said the reactor was not affected and the plant was operating as normal. The facility produces about a quarter of the UAE’s energy, the AP reported.
The conflict has sent oil and gas prices soaring worldwide. As of Sunday, the average gallon of gas in the U.S. was $4.51, according to AAA. That has driven worries of rising inflation, as the cost of fuel trickles down to consumers through virtually every industry. Inflation rose to 3.8% in April, according to the Consumer Price Index released last week. That was the highest reading since May 2023, and far above the Fed’s 2% target.
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