US equity markets extended their decline on Thursday, pressured by a sharp surge in crude oil prices and renewed investor skepticism regarding the return on investment for artificial intelligence infrastructure.
The Dow Jones Industrial Average and S&P 500 both posted significant losses, continuing a volatile trading week that has seen broad-based selling across major indices.
Brent crude oil breached the psychological $100 per barrel threshold, driven by escalating geopolitical tensions in the Middle East.
Brent crude oil breached the psychological $100 per barrel threshold, driven by escalating geopolitical tensions in the Middle East.
Reports indicate that shipping disruptions in the Strait of Hormuz, compounded by US military strikes on Iran, have tightened supply expectations and pushed energy costs higher.
The spike in oil prices adds inflationary pressure to an already sensitive macroeconomic environment, raising concerns about the durability of the economic recovery.
Simultaneously, the technology sector faced headwinds as several major companies reported quarterly results that failed to allay fears about the profitability of their massive AI spending.