AI stock plunge drags global markets; oil jumps on Iran war concerns
The Guardian reported that AI-related stocks drove a global selloff Thursday, with the S&P 500 down 1.2% and Nasdaq down 2.6%, while Brent crude rose 4% to $113.17.
What you need to know
The Guardian reported a global market selloff Thursday led by AI-related stocks, with the S&P 500 down 1.2% and the Nasdaq down 2.6%. Brent crude jumped 4% to $113.17 amid Iran war uncertainty. Lam Research fell 11.8% despite beating estimates, Meta lost 7%, and Nvidia dropped 4.4%.
- The S&P 500 fell 1.2% and the Nasdaq dropped 2.6%, while the Dow added 11.89 points.
- Brent crude rose 4% to $113.17, its highest level in five months.
- The 10-year Treasury yield fell to 4.97% from 5.13% as investors sought safety.
Wall Street slides on AI weakness
The Guardian reported that AI-related stocks pulled US markets lower on Thursday. The S&P 500 fell 1.2% to 7,663.43 for its worst day since July, while the Nasdaq composite tumbled 2.6% to 26,008.86. The Dow Jones Industrial Average added 11.89 points to 52,867.98. Despite the tech-led decline, two out of every three stocks in the S&P 500 rose.
Lam Research fell 11.8% even after reporting summer profit and revenue slightly above analyst expectations. Meta Platforms lost 7% after stronger-than-expected revenue but weaker profit, and Tesla fell 3.1%. Nvidia dropped 4.4% and CoreWeave fell 10.1%. The Guardian attributed the pressure to worries about borrowing costs for datacenters and AI chips and to valuations after a years-long rally.
Oil and bonds react to war uncertainty
Brent crude jumped 4% to $113.17 a barrel, touching its highest level in five months, on uncertainty about when the war with Iran will allow the global energy industry to return to normal. The Guardian reported that oil has risen from less than $97 at the start of the month.
In bond markets, the 10-year Treasury yield fell to 4.97% from 5.13% late Wednesday as investors bought US government debt for safety. The Guardian said the drop came even as a report showed fewer US workers applied for unemployment benefits last week. In Asia, South Korea's Kospi fell 3.5%, Hong Kong's Hang Seng dropped 3% and Japan's Nikkei 225 sank 2.7%. France's CAC 40 lost 1.4%.
How did major US indexes and oil prices move on Thursday?
The S&P 500 fell 1.2% and the Nasdaq dropped 2.6%, while the Dow added 11.89 points. Brent crude rose 4% to $113.17 a barrel, its highest in five months, on Iran war uncertainty.
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