US equity markets extended their decline on Tuesday, following lower closes in Europe, as a broad-based selloff in the semiconductor sector weighed heavily on the Nasdaq Composite.
The tech-heavy index faced renewed headwinds, continuing the weakness that had already surfaced in Monday's trading session.
Investors appeared to be digesting fresh pressure on chip stocks, which have been a key driver of market volatility in recent weeks.
The semiconductor-driven drag on equities was compounded by a flare-up in Middle East tensions, which sent crude oil prices sharply higher.
The rise in energy costs added to the risk-off sentiment, creating a dual headwind for US stocks as traders balanced tech valuation concerns against rising geopolitical risk premiums.
This dynamic mirrors the cross-asset reaction seen earlier in the month, where fading peace hopes in the region lifted oil while weighing on Asian equities and US futures.
The market move comes after a record-breaking second quarter, with the S&P 500 and Nasdaq Composite both dipping at the open on Tuesday to mark a cautious start to the third quarter.