Wall Street Slumps on AI Spending Fears, Oil Surge

New York stocks plunged overnight, driven by fears that massive artificial intelligence investments may be unsustainable, compounded by rising oil prices after Houthi attacks on Saudi Arabia. The tech-heavy Nasdaq index fell 2.6%, its biggest drop since June, while the S&P 500 declined 1.21%. Meta shares dropped 7% after reporting strong quarterly revenue but a deficit in free cash flow due to 46 trillion won in infrastructure spending, raising concerns about AI investment. Chipmakers AMD and Intel each fell over 8%, while Brent crude rose 4% to $113.17 per barrel, the highest in five months. US 10-year Treasury yields fell as investors sought safe assets. Western Digital later beat expectations with its earnings report after market close.