U.S. stocks slide as Iran war fears and AI spending concerns hit markets

U.S. stocks fell sharply Thursday as fears of an Israel-U.S. attack on Iran drove oil prices higher and tech stocks declined, with the S&P 500 down 1.4% and the Nasdaq off 2.2%. The sell-off followed reports of preparations for a military operation in Iran after the November midterms, targeting energy and nuclear sites. Meta and Tesla led tech losses after earnings, while Nvidia's CEO said AI investment capital was becoming "scarce." Brent crude rose over 2% and Treasury yields fell as investors sought safe havens. A market drawdown could undermine President Trump's economic argument ahead of the Nov. 3 election, with French debt stress also dragging European stocks.