Brent crude jumped 9.6% Monday after President Donald Trump said he was reinstating a blockade to stop tankers carrying Iranian oil from using the Strait of Hormuz, and the shock rippled straight into two of Wall Street's most sensitive markets at once [1]. The Nasdaq composite sank 1.6%, the S&P 500 fell 60.06 points to 7,515, and the Dow Jones Industrial Average dropped 138 points, or 0.3% [1].

Chipmakers led the retreat. Nvidia, the largest stock on Wall Street by value and the single heaviest weight on the S&P 500, fell 3.5%; Micron Technology fell 4.4% [1]. Both are prime beneficiaries of the AI boom, and AP notes the demand behind them is real: the memory rush reflects surging orders, not just enthusiasm [1].

The second pressure came from the bond market. The yield on the 10-year Treasury climbed to 4.61% from 4.56% on Friday as costlier oil revived inflation fears that could keep the Federal Reserve from cutting rates [1]. Higher rates cap inflation but slow the economy and drag on stock prices.

X's argument over whether this is an AI bubble bursting or a buy-the-dip moment collapses two separate stories into one verdict. They are distinct: an oil-and-rates squeeze tied to Hormuz, and an AI trade whose earnings base is still growing, with S&P 500 profit growth forecast near the strongest since 2021. Brent, for all its jump, remains well below its wartime peak of nearly $120 a barrel, and the major indexes are still firmly positive for the year.

-- LUCIA VEGA, Sao Paulo