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US stocks quickly encountered profit-taking pressure after a sharp short-term rebound, with the S&P 500 flipping into negative territory just one day after its best single-session performance in weeks. Market reports indicated that pullbacks in some large-cap technology stocks, which had run up significantly, offset strong gains in the energy sector, dragging the broader market lower. Energy stocks emerged as a bright spot, benefiting from a sharp escalation in geopolitical risks and rising international oil prices. The Dow Jones Industrial Average edged down 6.06 points, or less than 0.01%, to close at 52,218.58. The S&P 500 fell 10.24 points (0.14%) to settle at 7,498.96. The tech-heavy Nasdaq Composite suffered a steeper decline, dropping 146.31 points (0.57%) to end at 25,690.90. The escalating risk of a US-Iran war was the key factor driving the dramatic structural shift in the market over these two sessions. While rising oil prices raise inflation concerns for the broader economy, they directly boost the profit outlook for energy-related sectors, prompting a rotation of capital from overextended tech stocks into the energy sector. The price for Brent crude oil touched its highest level in nearly six weeks, and Treasury yields rose in the bond market. Philip Morris International, AT&T and other stocks rallied after reporting stronger profits for the spring than analysts expected but AI stocks continued to swing and dragged the U.S. market with them. Although the Philadelphia Semiconductor Index posted a staggering gain of over 5% on Tuesday, it immediately encountered pressure the following day, indicating that significant selling pressure persists at higher levels. Several major US technology companies are scheduled to report earnings later this week. Their financial results and future outlooks will serve as a critical bellwether for determining whether tech stocks can sustain their strength and for the overall direction of the US stock market. Asia-Pacific markets opened higher Thursday, with Japan's Nikkei 225 adding 0.55% while the Topix rose 0.22%. South Korea's Kospi advanced 2.3% at open, while the small-cap Kosdaq climbed 1.42%. Australia's benchmark S&P/ASX 200 was 0.72% higher. U.S. Treasury yields were higher across the curve on Tuesday as investors mapped escalating tensions across the Middle East and reports of mediation efforts to put a stop to ongoing hostilities. The yield on the 10-year U.S. Treasury note ' the key benchmark for U.S. government borrowing ' was up more than 3 basis points at 4.63%. Powered by Capital Market - Live News
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