Middle East Tensions and Rate Hike Fears Triggers Risk-Off

U.S. equities fell sharply as AI and memory‑chip stocks led declines, with investors reacting to surging Treasury yields and higher crude. The Nasdaq dropped 1.1%, the S&P 500 0.8%, and the Dow 0.7%, snapping last week’s strength. A sector‑wide selloff followed OpenAI’s decision to pause advanced‑model training, though Nvidia bucked weakness on expanded buybacks. Crude stayed elevated after the U.S. rejected Iran’s Strait of Hormuz reopening proposal, pushing the 10‑year yield near 5.27% and reinforcing dollar strength.

In India, the rupee eased to 95.98, while Nifty fell 360 points to 22,780, deepening its downtrend. The 22,600–22,700 band is the next key support; below it, 22,200 may come into play. Resistance has shifted lower to 23,100–23,150.