AI stock slump hits global markets as oil prices reach seven-month high

Global stock markets fell Thursday as artificial-intelligence stocks declined worldwide, while oil prices climbed to their highest level since May amid concerns over the war with Iran. The S&P 500 dropped 0.8 percent, and the Nasdaq composite fell 1.5 percent. AI-related stocks were pressured by worries that their boom may be threatened by expensive borrowing costs for data centers and AI chips, plus concerns that prices had risen too high. Lam Research tumbled 7.7 percent despite beating profit expectations, while Meta Platforms lost 5.8 percent and Nvidia dropped 2.3 percent, weighing heavily on the S&P 500. Asian markets saw sharper losses, with South Korea's Kospi down 3.5 percent and Japan's Nikkei 225 sinking 2.7 percent. Brent crude rose 2.6 percent to $111.66 per barrel, while U.S. Treasury yields fell as investors sought safer assets, though most S&P 500 stocks actually rose on Thursday.