AI Costs and Oil Prices Shake Nasdaq
AI costs, rising oil prices, and declines in Meta and CoreWeave shares triggered sharp selling in the Nasdaq Composite index.
Concerns over the cost of artificial intelligence investments, rising oil prices, and losses in tech stocks caused a sharp drop in the Nasdaq Composite index, while President Trump made statements regarding Ukraine's access to Starshield.
Sharp declines in shares of leading artificial intelligence and technology companies, such as CoreWeave and Meta, caused concern among investors. Rising interest rates, Brent crude oil trading around $115 per barrel amid fears of Middle East conflict, and allegations of a valuation target cut in OpenAI's funding round triggered the sell-off in the markets. As a result of these developments, the Nasdaq Composite index experienced its worst daily decline since June, and U.S. 10-year Treasury yields traded around 5 percent.
Meanwhile, President Trump did not give a clear response to a call to confirm whether he called Elon Musk to restore Ukraine's access to the Starshield satellite internet network, but stated that access had been restored.
Sources
- nytimes.com · Link