Baidu Inc (NASDAQ:BIDU) shares are retreating during Thursday's premarket session.

The move follows a broader sell-off in Chinese technology equities. Geopolitical uncertainty in the Middle East is driving the current market decline.

Geopolitical Tensions Trigger Risk-Off Sentiment

The U.S.-Iran conflict entered its 27th day on Thursday. President Donald Trump warned Iran to accept military defeat.

White House Press Secretary Karoline Leavitt stated Trump is prepared to "unleash hell."

This rhetoric has pushed investors toward safe-haven assets. Consequently, high-growth tech sectors are facing significant selling pressure. Major Chinese indices mirrored this weakness.

Regional Markets Lead Tech Decline

The Shanghai Composite Index fell 1.09% on Thursday. Meanwhile, Hong Kong's Hang Seng Index dropped 1.89%.

Technology stocks led these losses across Asian exchanges. Traders remain concerned about volatile oil prices and global inflation. Japan has already started releasing state oil reserves to temper price surges.

Conflicting Reports On Peace Talks

Market sentiment soured further after conflicting reports regarding a ceasefire. Trump claimed Iran is eager for a deal. However, Iranian Foreign Minister Abbas Araghchi denied this.

"We do not plan on any negotiations," Araghchi told state TV. Ongoing missile strikes in Abu Dhabi and Israel continue to fuel regional instability.

Technical Analysis

Baidu is trading 7.2% below its 20-day simple moving average (SMA) and 14.6% below its 100-day SMA, keeping the near-term trend pointed down even as it tries to stabilize.

Shares are up 18.56% over the past 12 months, but the stock is currently positioned closer to its 52-week lows than its highs.

The RSI is at 33.65, which sits in neutral territory. Meanwhile, MACD is at -5.2863 and below its signal line at -5.1249.

  • Key Resistance: $128.00
  • Key Support: $108.00

BIDU Stock Price Activity: Baidu shares were down 3.29% at $111.80 during premarket trading on Thursday, according to Benzinga Pro data.

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