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Equities Markets Fall Intraday Amid Tech Sell-Off

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Equities Markets Fall Intraday Amid Tech Sell-Off

Wall Street's benchmark equity indexes fell intraday amid a sharp sell-off in technology stocks, as President Donald Trump vowed to "respond" to an Iranian attack on a US military helicopter over the Strait of Hormuz.

The Nasdaq was down 2% at 25,425.1 after midday Tuesday, while the S&P 500 lost 1.1% to 7,328.9. The Dow Jones Industrial Average declined 0.2% to 50,678.7. Among sectors, tech saw the steepest drop, shedding 3.5%, while real estate paced the gainers.

Salesforce (CRM) shares were down 4.7% intraday, the worst performer on the Dow. The cloud-based customer relationship management platform provider implemented a fresh round of job cuts, Business Insider reported Tuesday, citing people familiar with the matter and a regulatory notice.

Cisco Systems (CSCO) dropped 4.3% and followed Salesforce on the Dow. Nvidia (NVDA) fell 2.1%. Super Micro Computer (SMCI) slid 10%, among the steepest declines on the S&P 500.

Also under pressure were other major tech names such as Apple (AAPL), Microsoft (MSFT), IBM (IBM), Qualcomm (QCOM), Dell Technologies (DELL), and Advanced Micro Devices (AMD).

Outside tech, J.M. Smucker (SJM) reported better-than-expected fiscal fourth-quarter results, while the food producer's full-year earnings outlook came in above Wall Street's estimates at the midpoint. The stock was up 9.7% intraday, the best performer on the S&P 500.

Trump said Tuesday that Iran shot down a US Apache helicopter over the Strait of Hormuz on Monday night. He said the two pilots were unharmed.

The US must "respond to this attack," he said in a social media post.

Trump told reporters in New York on Monday that a diplomatic resolution to the Middle East conflict could be reached in "two or three days," CNBC reported. The crucial Strait of Hormuz, which remains effective shut, would reopen "immediately" after the deal, Trump reportedly said.

Trump has made similar claims on a number of occasions in the past.

West Texas Intermediate crude oil was down 3.7% at $87.94 a barrel intraday, while Brent fell 3% to $91.43.

"The continued lack of progress towards restoring normal energy flows from the Middle East reinforces expectations of a prolonged period of elevated oil prices," Saxo Bank said in a report on Tuesday.

US Treasury yields were lower intraday, with the 10-year rate down 3.4 basis points at 4.53%, and the two-year rate falling 3.3 basis points to 4.13%.

In economic news, US existing home sales increased to the highest level since December in May, a move that is expected to bode well for the economy, the National Association of Realtors said Tuesday.

The US trade deficit narrowed in April as export growth outpaced an increase in imports, government data showed Tuesday.

Gold was down 1.7% at $4,290.10 per troy ounce, while silver shed 4.6% to $65.38 per ounce.

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