Nasdaq shaken by Hormuz-driven oil spike

On the 1st (local time), the Nasdaq closed down 1.0%, with the S&P 500 (-0.7%) and Dow (-0.8%) also falling. A surge in oil prices tied to the Strait of Hormuz and elevated Treasury yields triggered tech-stock selling.

• Saudi tankers were struck in the Strait of Hormuz and US-Iran strikes resumed, stoking supply-disruption fears; crude oil jumped 5.7% and US Treasury yields reached their highest level since January 2025

• Selling concentrated in large-cap tech, with Dell (DELL) -6.8% and Oracle (ORCL) -5.2%, while the VIX rose 9.5% to 16.34

• Moderna (MRNA) rose 9.9%, the biggest large-cap gain of the day, against the tech names leading the declines

• Soft July JOLTs job openings helped trim intraday losses; ADP private payrolls on the 2nd and the jobs report (NFP) on the 4th are the next checkpoints for the rate path

Semiconductors -2.1%, the deepest sector decline inside tech

Only energy and three defensive sectors higher; cyclicals and tech fell across the board

• The semiconductor sector fell 2.1%, the epicentre of tech weakness, with consumer discretionary and technology posting the widest declines

• On top of that, only four of 11 sectors closed higher — energy, utilities, health care and consumer staples

• That said, Japan's benchmark government bond yield hit a 30-year high while the long-dated US Treasury yield held flat at 5.27%

• Broadcom's (AVGO) earnings on the 2nd are the first test of sentiment toward tech

SaaS and security names sold off together

CrowdStrike (CRWD) -6.9% and other software and security names accounted for most of the day's largest tech declines, while the debate over a Fed policy-rate hike reignited

• Datadog (DDOG) -5.6%, Zscaler (ZS) -5.3% and Palo Alto Networks (PANW) -5.2% plunged together

• On top of that, Fed Governor Michael Barr said he would support a policy-rate hike if inflation does not ease

• That said, Ironsides' Barry Knapp called raising the policy rate a "massive policy mistake"