Markets fall as oil surges on Iran strike fears and AI spending concerns

Summarised from 2 outlets · Updated 22 Oct, 23:08 · Archive

US and stock markets fell Thursday as oil prices jumped above $113 a barrel amid reports of planned strikes on Iran, while tech stocks slumped over AI spending worries.

US stock markets fell sharply Thursday as oil prices surged and tech stocks tumbled. The Nasdaq composite plummeted 2.6% to 26,008.86 for its worst day since June, while the S&P 500 dropped 1.21% to 7,663.43. The Dow Jones Industrial Average rose 11 points. Oil prices climbed as traders feared an escalation in the Middle East conflict. Brent crude oil futures rose 4% to $113.17 a barrel, hitting their highest levels since May, while West Texas Intermediate crude jumped 2.4% to $99.47.

Reports that the US and Israel are planning new strikes on Iran after the midterm elections drove the oil rally. The New York Times reported that US and Israeli officials have drawn up plans for a 'short but intensive' operation. The US also ordered non-emergency personnel and their families to leave Saudi Arabia. National average gasoline prices have remained above $4 a gallon.

Tech stocks led the decline despite strong company earnings. Meta fell 8% despite reporting a 26% jump in quarterly revenue, while Tesla fell 3.1% after reporting stronger profit than expected. Both companies' declines were driven by investor concerns over their artificial intelligence spending plans. The weakness in tech stocks was so overwhelming that the majority of non-tech stocks actually rose.

How it is being reported

• Sharp drops for AI stocks overwhelm markets worldwide as oil prices jumpDatacenter and chip costs fueled sharp decrease in AI sector although non-AI stocks still had a strong showing The 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…The Guardian · 22 Oct, 22:50
• Oil soars above $111 as stocks plummet on Iran strike news, AI spending concernsStocks fell Wednesday as oil prices soared above $111 a barrel on reports that the US and Israel are planning new strikes on Iran, while Meta and Tesla led tech stocks lower on AI spending concerns.New York Post · 22 Oct, 16:54

In this story: United States · Israel · Iran · Meta · Tesla · Saudi Arabia

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