Major U.S. stock indices closed lower across the board.
The Nasdaq and the S&P 500 showed slight weakness, while the Dow Jones Industrial Average dropped by over 0.8%.
By sector, energy rose more than 1% due to geopolitical risks, whereas major cyclical sectors such as real estate and materials declined uniformly.
The biggest pressure came from escalating tensions surrounding the Strait of Hormuz.
International oil prices surged following reports that the Iranian parliament is reviewing a bill to restrict the passage of U.S. and Israeli vessels, compounded by reports of explosions detected in nearby waters.
Late in the session, news broke that Iran and Oman were nearing a provisional agreement to resume navigation through the strait, but uncertainty remains regarding whether an actual agreement will be reached and the potential imposition of future tolls.
Profit-taking also emerged across technology stocks.
Concerns over massive capital expenditures linked to expanded AI investments and their actual profitability held back the market.
In particular, memory chip maker SanDisk plummeted over 6% after its earnings outlook fell short of market expectations.
Initial jobless claims for last week came in at 199,000, missing market forecasts and reaffirming the resilience of the U.S. labor market.
However, concerns that stable employment could sustain inflationary pressures pushed Treasury yields higher, with the 10-year Treasury yield rising to 4.67% and increasing downward pressure on the stock market.
Investors are now closely watching the July nonfarm payrolls report, which is scheduled to be released at 9:30 PM tonight, Korean time.
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