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The S&P 500 and Nasdaq indices fell as selling pressure resumed in the technology sector, which had previously driven market gains. Tech stocks, including major names like Apple and Microsoft, faced profit-taking after a recent rally, dragging down broader indices. Meanwhile, former President Donald Trump vowed to respond to the downed US helicopter incident in the Middle East, raising concerns about potential geopolitical tensions. The market reaction reflects investor caution ahead of key economic data and central bank decisions.
The decline in tech stocks highlights vulnerabilities in the growth sector, which has been a key driver of the US equity market. Traders are now monitoring whether the sell-off will spread to other sectors or remain contained to technology. Geopolitical risks, particularly Trump's comments on the helicopter incident, could further weigh on risk assets if tensions escalate. The US Federal Reserve's upcoming policy meeting also remains a critical focus for market participants.
For Gulf investors, the tech sector's performance is closely tied to global equity markets, which influence Saudi Arabia's Vision 2030-linked investments. The geopolitical developments in the Middle East add another layer of uncertainty, potentially affecting oil prices and regional stability. Traders should watch for follow-through selling in tech stocks and any policy responses from the US government that could impact global markets.
