Global AI stock selloff hits markets as oil prices surge

Global AI stock declines triggered a worldwide market selloff on Thursday, while oil prices surged to their highest levels since May amid Iran war concerns. The S&P 500 fell 1.2% for its worst day since July, and the Nasdaq composite dropped 2.6%. The tech weakness, driven by worries over expensive datacenter borrowing costs and inflated AI valuations, masked broader market strength—most S&P 500 stocks actually rose. Major decliners included Lam Research (down 11.8%), Meta Platforms (down 7%), Tesla (down 3.1%), and Nvidia (down 4.4%), with Asian indexes also hit hard. Brent crude jumped 4% to $113.17 per barrel, while US 10-year Treasury yields tumbled to 4.97% from 5.13% as investors sought safe havens. Despite the tech rout, solid US economic data and strong earnings from companies like Procter & Gamble helped limit overall losses.