Slumping AI stocks drag Wall Street lower, oil prices jump as US launches more airstrikes on Iran
Chip and AI shares fell as investors worried valuations were stretched and oil prices climbed after the U.S. expanded strikes on Iran.
- On Friday, Wall Street faced losses as the S&P 500 dropped 1.01% and Brent crude rose 2.5% to $86.34, while the United States expanded airstrikes against Iran, hitting infrastructure near the Strait of Hormuz.
- Chip stocks remain under pressure amid investor concerns that valuations shot too high and demand for processors may not be sustainable if AI fails to deliver promised profit and productivity gains.
- Netflix sank 6.8% after revenue fell short of analyst expectations, while Intuitive Surgical dropped 12.6% despite topping profit targets, adding earnings-driven pressure to Friday's market.
- Tech sold off worldwide, with indexes tumbling 6.5% in Taipei, 4% in Tokyo, and 3% in Shanghai, while SpaceX fell 4.5% after aborting a Starship rocket launch and SoftBank Group shed 9%.
- High oil prices sent Treasury yields upward, threatening to slow the economy and undercut stock valuations, while potential gasoline price hikes could complicate the Federal Reserve's inflation strategy.
30 Articles
30 Articles
Oil prices continue to rise after renewed attacks in the Middle East. Investors fear that this may weaken the world economy. Meanwhile, a disappointing outlook on the stock market is burdening Netflix's price.
New York stock exchanges closed the weekend with losses on Friday. The sell-off among chip manufacturers intensified on Friday. Investors are increasingly concerned that tech companies' massive spending on artificial intelligence (AI) is becoming increasingly difficult to justify.
The Grand Junction Daily Sentinel
Slumping AI stocks drag Wall Street lower, oil prices jump as US launches more airstrikes on Iran
Wall Street was on track to close the week with losses on Friday as the sell-off of chipmakers and other AI-related shares again dragged markets lower. Futures for the S&P 500 declined 0.8% while futures for the Dow Jones Industrial…
Boston 25 News
AI stocks keep falling, while oil prices keep climbing
More swings for computer chip companies and other AI winners are yanking stock markets lower
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