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FROM CHIPS TO CRUDE: MARKETS JOLT ON TECH, TENSIONS

The main U.S. stock indexes are modestly red early on Wednesday, as a selloff in technology stocks continues and renewed tensions between the United States and Iran overshadow an in-line inflation reading.

Volatility has picked up across stock markets in recent days, as investors contend with a widening array of risks, including high valuations in the tech sector, escalating tensions in the Middle East and expectations that the Federal Reserve may need to hike interest rates to curb inflation.

On Tuesday, the S&P 500's .SPX intraday range as a percentage of its prior day's close was the highest since November of last year. With this, the Cboe Volatility Index .VIX, often called the market's fear gauge but in academic terms more a measure of uncertainty, hit 23.34, or its highest level since early April. Early on Wednesday, it's dipping back toward the 20 level.

S&P 500 .SPX sectors are mixed with industrials .SPLRCI, off nearly 1%, the weakest group. Amid the Middle East tensions, and higher crude futures CLc1, energy .SPNY, up more than 1%, is the leading gainer.

Under the surface, small caps .RUT, big banks .SPXBK and regional banks .KRX are showing strength. Gold/silver miners .XAU and transports .DJT are on the weak side.

Of note, chip stocks have sharply pared losses vs. premarket lows. At one point ahead of the open, the Invesco PHLX Semiconductor ETF SOXQ.O was down more than 3%. It's now roughly flat on the day.

Here is a snapshot of where markets stood shortly before 10 a.m. EDT.

(Terence Gabriel)

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EARLIER ON LIVE MARKETS:

AMERICA'S AI SPLURGE HITS A GDP GLITCH CLICK HERE

S&P 500 FUTURES PARE LOSSES AFTER MOSTLY IN LINE CPI CLICK HERE

INVESTORS SNAP UP GERMANY'S 10-YEAR BONDS CLICK HERE

THE SELL-AMERICA TRADE THAT NEVER WAS CLICK HERE

WHY AN ECB HIKE COULD BE A POLICY MISTAKE CLICK HERE

BANKS, ENERGY, MINERS TO BENEFIT IN ECB HIKING CYCLE CLICK HERE

IRAN AND U.S. TRADE STRIKES, EUROPEAN STOCKS SHRUG CLICK HERE

EUROPE BEFORE THE BELL: WHAT ESCALATION? CLICK HERE

NERVOUS BUT NOT YET PANICKING CLICK HERE