02.04.202613:35:49UTC+00US Stocks Retreat Sharply

US equities fell sharply on Thursday as increasingly confrontational rhetoric from President Trump reinforced fears of a prolonged conflict with Iran and heightened the risk of a global energy shock. The S&P 500 and Dow declined by more than 1%, while the tech-heavy Nasdaq 100 dropped over 1.5%.

The President vowed more aggressive strikes on Iran in the coming weeks, bolstering expectations that energy exports from the Persian Gulf will remain disrupted and that regional energy infrastructure will continue to be at risk. These conflict-driven inflation concerns pushed Treasury yields higher across the curve, weighing on equities that had been buoyed earlier in the week by improving credit conditions and stronger risk appetite.

Large-cap growth and tech names came under particular pressure: Nvidia, Amazon, and Meta each fell more than 2%. Tesla slid 4% after reporting one of its weakest quarterly sales performances in recent years.

In credit markets, Blue Owl dropped 7% after disclosing redemption requests equal to 41% of assets in two private credit funds, forcing the firm to impose caps on withdrawals and extending the turmoil rippling through the private credit sector.