US stock market indices opened in the red on Tuesday, as investors displayed cautuon over rising oil prices, higher global bond yields and renewed military tensions between US and Iran.
The weakness comes as investors sepculate over the likelihood of elevated energy prices would drive up cost inflation and affect the Federal Reserve's monetary policy outlook.
After the opening bell, the Dow Jones Industrial Average was down by 0.7% or 363 points, with the S&P 500 falling by the same amount, the Nasdaq Composite logged a 1.3% reduction.
The price of oil also saw a decline with Brent crude trading at a 4.82% uptick at $92.63 per barrel at 7:00 p.m. IST.
Shares of Alumnis, the biopharmaceutical company saw a 56% drop to its lowest since January.
The US's 10-Year Treasury yield went up by 3 basis points To 4.78%. The West Texas Intermediate crude futures rose by 2.7% to trade at $88.07 per barrel as the markets opened. Spot gold fell by 2.1% to $4,344.44 an ounce.
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Tech stocks dragged down the indices with Nvidia falling by 2.03% or 4.47 points to $216.31. Other heavyweights in the sector like Advanced Micro Devices saw a 2.63% downturn or 12.40 points lower to $458.32 and Micron Technology trading at a downtrend of 2.01%.
The decline comes after a strong performance in August for US technology stocks, with AI-related stocks among the market's leading performer. September has historically been a challenging month for equities, adding another reason for investors to remain cautious as the new month begins.
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