At midday, the S&P 500 (SNPINDEX:^GSPC) slipped 0.40% to 7,201.55, the Nasdaq Composite (NASDAQINDEX:^IXIC) eased 0.40% to 25,015.09, and the Dow Jones Industrial Average (DJINDICES:^DJI) fell 0.83% to 49,087.31 as oil’s surge above $100 pressured markets.

Market movers

Circle Internet Groupsoared 17% on reports that lawmakers had made progress toward clearer stablecoin and cryptocurrency legislation.  Popular crypto exchange, Coinbase, also gained. Delivery services such as FedExand United Parcel Serviceslipped on news that Amazonwould expand its shipping and distribution services.

Investors will be watching upcoming earnings from Advanced Micro Devicesand Palantir Technologiesto assess the strength of artificial intelligence (AI) and broader tech leadership.

What this means for investors

Fears of escalating tensions in the Middle East weighed on markets this morning, causing headline-driven volatility. WTI crude had reached $105 a barrel by midday, close to a four-year high, as a renewed focus on traffic through the Strait of Hormuz pushed up oil prices and pressured stocks.

In recent weeks, resilient first-quarter earnings have outweighed energy concerns, particularly in tech, where megacaps have beaten analyst expectations. However, today’s oil price spike is a reminder that geopolitical risks are still a factor.  Prolonged closure of the strait could push up inflation, disrupt supply chains, and limit growth.

With major indexes trading close to record highs, results from AMD and Palantir, as well as developments in the U.S.-Iran war, will likely drive near-term performance.

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