AWS Data Centre Strikes Trigger 2.7% Nasdaq Drop, Intel Slides Over 5%
US stocks extended their slide with the Nasdaq plunging 2.7% and S&P 500 down 2.5% as Iran-backed drone strikes hit AWS data centres in the UAE and Bahrain. Tech stocks including Intel, Western Digital and Micron each shed over 5% as investors question the vulnerability of digital infrastructure.
1. Market downturn on geopolitical tensions
US stocks extended their slide with the Dow down 2.5% at 47,650, the Nasdaq plunging 2.7% to 22,126 and the S&P 500 off 2.5% at 6,711 following escalating Iran conflict. The Russell 2000 fell 3.5% as small caps underperformed.
2. AWS data centre attacks escalate tech sector risk
Iran-backed drones struck two AWS data centres in the UAE and damaged a facility in Bahrain, signaling a new front in the conflict beyond energy infrastructure. This marks a potential escalation in targeting digital assets critical to cloud services.
3. Intel and peers suffer steep losses
Tech names were hit hardest as Intel, Western Digital and Micron each lost over 5% on fears of rising risk premiums and higher insurance costs for exposed digital infrastructure. Analysts warn that valuation multiples and capex plans may shift if such attacks recur.