US stocks opened sharply lower on Wednesday as renewed tensions between the US and Iran weighed on risk appetite and sent oil prices higher.
The Dow Jones Industrial Average fell 611 points, or 1.16%, to 52,136 in early trading.
The S&P 500 dropped 0.4% to 7,400, while the technology-heavy Nasdaq Composite declined 0.5% to 24,763.
Chip stocks remained under pressure, although losses were less severe than during the previous session. SanDisk fell 3%, Advanced Micro Devices dropped 1.7%, and Micron Technology slipped 0.7%.
Western Digital bucked the trend, rising 1.2%.
Markets are contending with two major sources of volatility this week: continued weakness in artificial intelligence and semiconductor shares, and a sharp rise in energy prices following the renewed escalation in the Middle East.
Brent crude surged 6.7% to US$89.68 a barrel, reviving concerns that higher energy costs could add to inflationary pressure and complicate the outlook for interest rates.
