US tech stocks, which powered April’s recovery rally, traded lower on Monday, 20 April, as investor sentiment turned cautious. Renewed tensions between the US and Iran—after a brief easing—have resurfaced, driving a rebound in crude oil prices.
The Nasdaq 100 was down 1% at its intraday low of 26,412. If it closes lower, the index will snap its 13-day winning streak—one of the longest in recent history—which had helped it recover all war-driven losses and reclaim the 26,700 level.
Other key indices—the S&P 500 and the Dow Jones Industrial Average—were also down 0.60% and 0.40%, respectively, at their intraday lows. The reversal in sentiment comes amid concerns that the US and Iran may not be able to seal a long-term peace deal.
US President Donald Trump said it is “highly unlikely” he would extend the two-week truce if an agreement is not reached before it expires, adding that the Strait of Hormuz would remain blocked until an accord is finalised.
Iran has refrained from confirming its participation in further peace talks, even after Trump said a delegation was on its way to Pakistan, raising uncertainty over the prospects of a breakthrough. Transit through the Strait of Hormuz has slowed significantly amid the conflict, as Iran tightens control in response to recent strikes, according to a Bloomberg report.
Trump, who last week indicated that a deal was nearly finalised, later threatened to destroy Iran’s power plants and bridges if negotiations fail—highlighting the fragile nature of last week’s rally, which was largely driven by optimism rather than concrete developments.
Iran’s Foreign Ministry spokesperson, Esmail Baghaei, said there appears to be little seriousness on the part of the US in pursuing diplomacy in its conventional sense. Senior Iranian and US negotiators held around 20 hours of talks in Islamabad last Saturday without reaching an agreement.
The tech-heavy index had hit multiple record highs last week after Iran announced the reopening of the Strait of Hormuz to commercial vessels. Trump had also hinted at a possible resolution and signalled openness to extending the ceasefire, which boosted market sentiment.
An index tracking the so-called Magnificent Seven technology giants has surged 13% in April so far, reversing a 17% decline from its October peak. Shares of Microsoft Corp. have been emblematic of the turnaround, rising 19% after falling 34% between late October and late March.
Oil prices rebound as Middle East tensions resurface
Amid renewed tensions in the Middle East, US crude oil prices surged more than 7% to around $89.71 per barrel, while international benchmark Brent crude rose 8% to nearly $92.75 per barrel.
The recovery comes after crude prices logged two consecutive weeks of losses, which had pulled prices back to levels seen in the early days of the Iran conflict on Friday.
Wholesale gasoline prices also climbed over 4%, while heating oil futures—often seen as a proxy for jet fuel—jumped 7%. Natural gas prices rose 2%. These moves add to weeks of sharp volatility, as investors grapple with near-daily swings between hopes of peace and fears of escalation.
(With inputs from Bloomberg)
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