- AI has taken over the stock market. The bond market is next.
- The Nasdaq fell back below key levels, skidding 1.2% and the Nasdaq-100 index gave up 1.8%, both dropping back below their 21-day and 50-day lines.
- Chip and other AI names sold off following Samsung Electronics earnings that beat views but failed to wow.
- U.S.-Iran tensions pushed up oil prices, with U.S. crude oil prices rising 2.8% to $70.44 a barrel after Iran attacked several ships transiting the Strait of Hormuz.
- Oil prices jumped after three tankers were attacked in the Strait of Hormuz, while jitters about the outlook for the AI sector hit equities.
- The British maritime security agency UKMTO reported three tankers have been hit by projectiles or drones in the past 24 hours in or near one of the world's most important energy shipping routes, despite a ceasefire between the United States and Iran and efforts to secure a lasting peace agreement.
- Crude oil rose by more than two percent after renewed attacks on commercial shipping in the Strait of Hormuz reignited concerns over global energy supplies and cast doubt on the durability of the US-Iran agreement, said Axel Rudolph, chief technical analyst at investing and trading platform IG.
- The U.S. revoked its Iran oil sanctions waiver.
- Investors once again turned cold on AI stocks.
- The tech-rich Nasdaq Composite shed more than one percent in New York, while the blue-chip Dow closed 0.3 percent lower.
The Nasdaq Composite fell 1.2% as rising oil prices and disappointing earnings from Samsung Electronics weighed heavily on the market. The Nasdaq-100 index dropped 1.8%, reflecting investor concerns over the AI sector's stability amid geopolitical tensions.234567
U.S. crude oil prices surged 2.8% to $70.44 a barrel following attacks on commercial shipping in the Strait of Hormuz, where three tankers were reportedly hit. This escalation in U.S.-Iran tensions has reignited fears over global energy supplies, with Axel Rudolph, chief technical analyst at IG, stating, "Crude oil rose by more than two percent after renewed attacks on commercial shipping in the Strait of Hormuz reignited concerns over global energy supplies and cast doubt on the durability of the US-Iran agreement."89
The tech sector, particularly AI stocks, faced a sell-off as investors reacted to Samsung's earnings report, which, while beating expectations, failed to impress. This led to a broader decline in tech stocks, with the Nasdaq Composite dropping below key technical levels, including its 21-day and 50-day moving averages.11
Overall, the combination of geopolitical instability and disappointing corporate earnings has created a challenging environment for investors, particularly in the tech sector, as they navigate the implications of rising oil prices and the future of AI investments.
“The Nasdaq fell 1.2% and the Nasdaq-100 index dropped 1.8%, both below key moving averages. Meanwhile, U.S. crude oil prices surged 2.8% to $70.44 a barrel following attacks on tankers in the Strait of Hormuz, raising concerns over energy supplies.”
Yahoo Finance UK
