Nasdaq drops 2.6% on AI spending fears; oil hits five-month high

US stocks fell Thursday as renewed concerns over artificial intelligence spending pressured technology shares, while rising Middle East tensions pushed oil prices to a five-month high. The Nasdaq Composite posted its biggest daily drop since June, and the S&P 500 had its worst session since July. The Nasdaq fell 2.60% to 26,008.86, and the S&P 500 declined 1.21% to 7,663.43, while the Dow Jones Industrial Average edged up 0.02%. Major tech stocks led losses, with Meta Platforms down about 7%, AMD falling over 8%, and Nvidia dropping 4%, as investors reassessed AI infrastructure costs and financing needs. Brent crude rose 3% to $113.03 per barrel, and US West Texas Intermediate gained 2.18% to $99.27, after reports of potential US-Israel strikes on Iran and new Houthi attacks on Saudi targets. Treasury yields fell, with the 10-year dropping over 17 basis points to 4.974%, as investors sought safe havens.