Tech Stocks Drop as Oil Rises on Iran War Risks | Closing Bell

Summary

• S&P 500 fell 1.7% to lowest level since August 21, 2025; Nasdaq down 2.2%, entering correction territory with broad-based declines.
• Energy sector was the only gainer, up 1.87%, driven by surging oil prices: Brent above $113, WTI at $100, up ~5-6% on escalating Iran war risks.
• Goldman Sachs Trading desk advised against turning bearish on U.S. stocks, noting current positioning leaves market vulnerable to a short squeeze if geopolitical tensions ease.
• As Hochstein warned the market is pricing in risk but not disruption, with current events representing a novel, disruptive moment likely to have broader implications.
• JPMorgan estimated that if oil trades at $110 per barrel for the rest of the year, S&P 500 earnings could be cut by ~5%, challenging the bullish corporate earnings narrative.
• Citi highlighted a recurring pattern of selling on Fridays and buying back on Mondays due to weekend risk aversion in a headline-driven market with low conviction.
• Entergy stock jumped 6.8% on a deal with Meta to build and fund natural gas plants for data centers in Louisiana.
• Brown-Forman rose 5.6% on news of a potential acquisition by Bernard Arnault, though family approval remains uncertain.
• Peloton surged 8.9% after activist investor Eric Jackson publicly stated he is long the stock at $4, sparking intraday gains.
• Coinbase dropped over 7% on concerns about its crypto mortgage product with Better.com, with analysts questioning borrower advantages.
• Cybersecurity stocks like Palo Alto, CrowdStrike, and Zscaler fell sharply on a Fortune report about AI models potentially being used by hackers.