Iran's Islamic new Guard Corps claimed responsibility for targeting a U.S. base in Kuwait Thursday morning, according to the Tasnim news agency. The report immediately amplified geopolitical tensions in the Middle East.
U.S. equity markets reacted swiftly, with the Nasdaq dropping 1.7 percent to 24,443 and the S&P 500 falling 1.5 percent to 7,316. The Dow Jones Industrial Average declined 2.2 percent to 51,594.
Major technology stocks bore the brunt of the sell-off. Nvidia shares fell 3.6 percent to $190.01, while Tesla dropped 3.0 percent to $298.32. Meta Platforms lost 1.3 percent, trading at $585.61, and Amazon declined 1.8 percent to $226.65. Apple shares were down 0.6 percent at $338.19, and Microsoft slid 0.7 percent to $390.54. Alphabet was an outlier, gaining 0.9 percent to $336.71.
Heightened uncertainty typically leads investors to discount future cash flows more aggressively, pressuring growth-oriented technology stocks hardest. Nvidia and Tesla, both trading at elevated multiples, are most exposed to that repricing dynamic.
