Volatility Surges on Wall Street Amid Technology Stock Losses

Wall Street's main indexes fell to a two-week low due to declines in technology stocks and persistent uncertainties in international relations, which boosted oil prices and government bond yields. Despite losses in chipmakers and other tech giants, the energy sector saw gains due to geopolitical risks.

Wall Street's main indexes hit a two-week low on Tuesday, following significant losses in heavyweight technology stocks. The decline came as expectations for a peaceful resolution between the U.S. and Iran diminished, maintaining upward pressure on oil prices and pushing government bond yields to multi-year highs.

Major chipmakers and other tech growth stocks took a hit, as rising government bond yields affect the present value of future tech profits and increase corporate borrowing expenses. The Philadelphia SE Semiconductor index fell by 5.4%, risking the loss of over $680 billion in market value if the downward trend continues.

Amid geopolitical uncertainties, the S&P 500 Energy sector rose by 1.5%, nearing an all-time high, while Wall Street's fear gauge indicated heightened market anxiety. Retail earnings and upcoming Federal Reserve minutes could provide further insights into the economic outlook, affecting future market volatility.