Wall Street opened lower on Wednesday as investors adopted a cautious stance amid rising geopolitical risks in the Middle East.
New US airstrikes against targets in Iran have reignited fears of broader regional conflict, driving up oil prices and bond yields.
The market pullback comes just before the release of quarterly results from major technology companies, adding to investor uncertainty.
Brent crude and US Treasury yields both moved higher in the session, reflecting the immediate impact of the escalation.
The rise in energy costs raises concerns about renewed inflationary pressure, while higher yields increase the cost of capital for growth-oriented sectors.
This dual pressure has created a challenging environment for equity markets, particularly for tech stocks that are sensitive to interest rate movements.