Wall Street Wavers: Tech Stocks Tumble Amid Economic Data and Oil Price Rally

Global equities take a hit as technology stocks plunge on Wall Street. Oil prices rally amid U.S.-Iran tensions, while U.S. economic data influences dollar and treasury yields. ADP employment growth underwhelms, and traders anticipate Federal Reserve's next rate cut. AI-related disruptions worry investors.

On Wednesday, technology stocks took the lead in dragging down MSCI's global equities gauge, while Wall Street faced significant losses. The dollar exhibited strength following the latest U.S. economic data. Silver outperformed gold after a recent dip, and oil prices continued their upward trend amid U.S.-Iran tensions regarding planned nuclear talks.

Crude prices surged on Tuesday when an Iranian drone was downed by the U.S. and tensions flared in a crucial waterway. Investors wrestled with U.S. economic data, noting higher treasury yields. The ADP employment report fell short of expectations, indicating slower growth. The services sector showed steady activity but higher input costs, signaling potential inflationary pressures ahead.

Traders are betting that the Federal Reserve won't cut rates until June, despite current data. Concerns also arose about AI disruptions in the software and services sectors, impacting their market performance. The S&P 500's value index climbed 1% while growth index fell 1.7%, illustrating a shift in investment priorities amidst market uncertainties.

(With inputs from agencies.)