Nasdaq drops 2.1% as AI spending fears and $100 oil hit stocks
Why it matters: Rising crude and bond yields added inflation pressure ahead of the Federal Reserve’s next policy meeting.
US stocks closed lower Thursday, with the Nasdaq Composite falling 2.15% as investors recoiled from Big Tech earnings and another surge in oil prices. The S&P 500 lost 1.21% and the Dow Jones Industrial Average fell 0.97%. Markets were rattled after Alphabet and Tesla results renewed doubts about whether huge AI outlays will produce strong returns. Alphabet fell 7%, while Tesla sank 14.5% after reporting negative free cash flow. At the same time, Brent crude settled above $100 a barrel for the first time since May as fighting involving the United States, Iran and the Houthis raised supply concerns, pushing Treasury yields higher and reviving inflation worries.