Canadian and U.S. stock markets finished lower on Tuesday as investors reacted to renewed strength in oil prices, weakness in major technology shares, and ongoing uncertainty surrounding the conflict in the Middle East.

The S&P/TSX Composite Index fell by more than 230 points, while major U.S. indexes also declined. The S&P 500 and the Nasdaq Composite both moved lower, with technology companies contributing heavily to the market pullback.

Several semiconductor and artificial intelligence-related stocks came under pressure during the session. Shares of Broadcom, NVIDIA, and Micron Technology all declined as investors reassessed growth expectations in the AI sector.

Market sentiment was also affected by reports raising concerns about future spending on artificial intelligence infrastructure and data centers. Some investors fear slower investment growth in the sector could increase questions about whether current AI-related valuations are sustainable.

Meanwhile, oil prices continued climbing as geopolitical tensions involving Iran and shipping disruptions in the Strait of Hormuz remained unresolved. U.S. crude oil futures briefly approached the $100-per-barrel level, while Brent crude prices moved even higher.

Energy-related stocks on the TSX provided some support for the Canadian market, although broader weakness outweighed gains in the sector.

Investors are also closely watching upcoming interest rate decisions from both the Bank of Canada and the Federal Reserve. Market expectations currently point toward rates remaining unchanged, though traders will be focused on signals regarding future monetary policy and inflation risks.

Gold prices declined during the session despite geopolitical uncertainty, while the Canadian dollar weakened slightly against the U.S. dollar.

Ongoing developments in energy markets, central bank policy, and corporate earnings are expected to remain key drivers for investor sentiment in the coming weeks. BNN Bloomberg