US equity markets are set for a cautious trading session as investors digest the renewed geopolitical friction between the United States and Iran.

The latest escalation has injected fresh uncertainty into global risk sentiment, prompting traders to reassess exposure amid volatile commodity prices.

3%, even as the Dow Jones Industrial Average managed to post modest gains.

While the broader market remains on edge, the artificial intelligence sector continues to provide a stabilizing influence, supporting the Nasdaq Composite against the prevailing headwinds.

The divergence between tech-heavy indices and broader market sentiment highlights the ongoing tug-of-war between growth optimism and geopolitical risk.

Recent sessions have shown mixed signals, with the S&P 500 posting gains on Friday as oil prices retreated to pre-conflict levels, offering a brief respite from energy-driven volatility.

However, Wednesday’s session ended without a clear directional bias, as selling pressure in the technology sector dragged the Nasdaq Composite down 1.3%, even as the Dow Jones Industrial Average managed to post modest gains.