Wall Street opened on a weak note on Thursday as heavy selling in tech shares weighed on benchmark indices, with the Nasdaq Composite falling the most after a sharp decline in Alphabet shares.
At 9:33 a.m. EDT, the Nasdaq Composite was down 437.11 points, or 1.70%, at 25,253.79, while the S&P 500 slipped 72.52 points, or 0.97%, to 7,426.44, according to real-time market data.
The Dow Jones Industrial Average also traded lower, shedding 535.16 points, or 1.02%, to 51,683.42 at 9:32 a.m. EDT.
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Technology shares led the decline after Alphabet, Google's parent company, slumped about 6% following its latest quarterly results, dragging the broader tech sector lower and weighing heavily on the Nasdaq.
Adding to the risk-off mood, oil prices surged after Yemen's Iran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea, raising fears that tensions in the Middle East could escalate further.
Investor concerns intensified after US President Donald Trump warned of military retaliation against Iran. In a post on Truth Social, Trump said the US would strike Iranian infrastructure if the Islamic Republic targeted ships transiting the Strait of Hormuz.
The geopolitical tensions sent energy prices sharply higher. Brent crude futures climbed about 6% to trade above $99 a barrel after briefly touching $100, while West Texas Intermediate (WTI) crude rose roughly 5% to trade above $91 a barrel.
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Both benchmarks reached their highest levels since before Washington and Tehran agreed to end their conflict last month.
The combination of renewed geopolitical risks, soaring oil prices and weakness in heavyweight technology stocks weighed on investor appetite, with traders closely watching corporate earnings, developments in the Middle East and upcoming economic data for fresh market direction.
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