SPY is trading 1.4% lower as rising tensions between the U.S. and Iran drive oil prices higher and weigh on risk-sensitive assets.
- Geopolitical friction is pushing crude prices up, creating a "risk-off" environment that is dragging broader market indices lower.
- Investors are expressing caution over heavy AI-related capital expenditures from tech giants like Alphabet and Tesla, raising concerns about future margins and profitability.
- The index’s heavy weighting in large-cap technology stocks is amplifying the decline as sentiment shifts away from high-growth sectors.