US Stocks Mixed as Tech Weakens, Middle East Tensions Rise

U.S. stock markets experienced a mixed trading session, with the S&P 500 and Nasdaq indices closing lower. The decline was largely attributed to a cooling-off in the technology sector following a recent rebound. The Dow Jones Industrial Average, however, managed a slight gain.

Adding to market uncertainty, President Donald Trump stated that the U.S. must respond to Iran's downing of an American Apache helicopter. This declaration heightened concerns about potential escalation of the conflict in the Middle East, casting a shadow over investor sentiment. The incident involved a U.S. helicopter on patrol in the Strait of Hormuz.

The technology sector faced headwinds as major players showed weakness. Micron Technology saw a decline after a significant rebound, and Broadcom also experienced a drop. The upcoming initial public offering (IPO) of Elon Musk's SpaceX, which aims to raise $75 billion and achieve a valuation of $1.75 trillion, is also being watched closely. Investors are reportedly concerned about potential overvaluation in high-growth tech stocks, and SpaceX's massive IPO could be a significant factor influencing the market.

Specifically, the S&P 500 index fell by 0.26%, and the Nasdaq Composite dropped by 0.97%. The Philadelphia Semiconductor Index also saw a notable decrease of 1.93%. In contrast, the Dow Jones Industrial Average rose by 0.17%. Taiwan Semiconductor Manufacturing Company's (TSMC) American depositary receipts (ADRs) closed slightly higher.

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Iran shot down a U.S. Apache helicopter that was patrolling in the Strait of Hormuz, and vowed to respond.