Sharp drops for AI stocks overwhelm markets worldwide as oil prices jump

AI-driven stocks suffered a steep decline amid rising costs for datacenters and chips, dragging global markets lower despite broad strength in non-tech sectors. The Nasdaq composite dropped sharply, while the S&P 500 posted its worst daily loss since July, overshadowing gains in most other U.S. stocks. Meanwhile, oil prices surged to their highest levels since May, fueled by escalating tensions over the Iran conflict. The tech slump underscored how sector-specific pressures can outweigh broader market momentum.

Datacenter and chip costs fueled sharp decrease in AI sector although non-AI stocks still had a strong showingThe latest shudder for stocks in the AI industry pulled markets lower worldwide on Thursday, while oil prices hit their highest levels since May on worries about the war with Iran.The S&P 500 fell 1.2% for its worst day since July, while the Nasdaq composite tumbled 2.6%. The weakness for tech stocks was so overwhelming that it masked strength for the rest of the US market, in which the majority of stocks actually rose. The Dow Jones Industrial Average added 11 points, or less than 0.1%. Continue reading...