US Stocks Flat as AI Chips Cool, Oil Plunges on Iran Rumors; PCE Looms
US equities are treading water as profit-taking hits AI chip giants. Meanwhile, oil prices are in freefall on unconfirmed reports of a US-Iran deal, creating a volatile backdrop ahead of key PCE inflation data.
The US stock market is stuck in neutral, with AI chip leaders like Nvidia and AMD seeing significant profit-taking after a strong run. This rotation out of high-beta tech is pressuring the Nasdaq, while broader cyclical sectors are catching a bid as investors brace for crucial economic data. The market is clearly on edge, waiting for the next catalyst.
Adding to the choppiness, crude oil prices have collapsed nearly 6%. Whispers of a US-Iran framework to reopen the Strait of Hormuz sent WTI and Brent spiraling. While some reports suggest an agreement, others, including Trump himself, are denying any deal, creating massive uncertainty and dragging down the energy sector.
All eyes are now fixed on Thursday's PCE inflation print, the Fed's preferred gauge. Coupled with Q1 GDP and jobless claims, this data will be critical in shaping expectations for future Fed policy. Earnings from Marvell, Salesforce, and Snowflake also drop tonight, adding another layer of potential market fireworks. Investors are reducing risk across the board before these binary events.