IBM Shares Slide 7% as Oil Surges Over 2% on Middle East Tensions
IBM•IBM shares plunged about 7% after software stocks tumbled 3.1% as Brent crude rose over 2% on renewed Middle East tensions, sparking inflation fears and halting Wall Street’s record-high streak. The sell-off weighed on major indexes and increased speculation on a Federal Reserve rate hold.
1. Market Retreat Driven by Middle East Flare-Up
Renewed hostilities in the Middle East propelled Brent crude oil prices above 2%, sparking inflation concerns that led software stocks to decline 3.1% and pulled major U.S. indexes off record highs.
2. IBM Shares Tumble Near 7%
IBM was among the hardest hit software names, with its shares falling about 7% as investors weighed the prospect of higher supply-driven inflation and growing expectations of a Federal Reserve rate hold.
