Global stocks fall on AI sell-off; oil hits highest since May

Global stock markets fell sharply on Thursday as AI-related tech stocks tumbled, while oil prices surged to their highest level since May on concerns over the war with Iran. The Australian sharemarket is set to retreat at the open, with futures pointing to a 0.2 per cent loss. The S&P 500 sank 1.3 per cent and the Nasdaq dropped 2.4 per cent, led by declines in major tech firms like Nvidia, Meta, and Lam Research, despite some reporting stronger-than-expected profits. Oil prices rose 2.9 per cent to $US111.99 per barrel, while the Australian dollar weakened to US70.19¢. The sell-off began in Asia, with South Korea's Kospi down 3.5 per cent and Japan's Nikkei falling 2.7 per cent. US Treasury yields fell sharply as investors sought safer assets, though concerns about government debt and high inflation continue to weigh on global markets.