Nasdaq indices close sharply lower as Iran war heats up

Major U.S. stock indices closed sharply lower, led by the technology-heavy Nasdaq 100 which shed 1.29% to 29,077.22, while the small-cap Russell 2000 declined 1.23% to 2,920.13. The Dow Jones Industrial Average dropped 419.06 points (-0.79%) to 52,772.27, and the S&P 500 retreated 0.71% to 7,631.48. Heavy selling pressured growth, software, cybersecurity, and crypto-related equities amid rising Middle East military tensions. Key individual decliners included Cadence Design (-7.60%), CrowdStrike (-6.90%), Strategy (-6.03%), and Coinbase (-6.00%). Dell Technologies dropped 6.80% during regular trading but surged over 10% after-hours following strong earnings, reporting adjusted EPS of $7.04 against $4.91 expected and hiking full-year AI server revenue guidance to $74 billion. Geopolitical escalation and rising oil prices pushed the probability of a September Federal Reserve rate hike to 68%. Concurrently, the 10-year Treasury yield rose to 4.80%, intensifying concerns over elevated government deficit financing costs and exerting broader pressure across risk assets.