Nasdaq Plunges Amid AI Spending, Oil Surge

The Nasdaq Composite experienced its steepest decline since June, falling more than 2 percent today as investor concerns mounted over the sustainability of artificial intelligence spending and surging oil prices. Major technology stocks, including Meta, Advanced Micro Devices, and Micron Technology, led the losses following mixed earnings reports that failed to reassure markets about the long-term profitability of significant investments in AI. Tesla shares also retreated after the company lowered its capital expenditure forecast, casting doubt on the pace of its AI and robotics initiatives. According to Reuters and Bloomberg, the drop was exacerbated by a sharp rise in oil prices driven by renewed geopolitical tensions, particularly reports of planned strikes involving Iran, which increased fears of potential supply disruptions in the energy market. The S&P 500 and Dow Jones Industrial Average recorded substantial losses as well, with the Dow dropping 279 points. The Philadelphia Semiconductor Index posted a decline of 6.5 percent, the worst intraday fall since July. Market sentiment was broadly risk-off as investors responded to heightened uncertainty in both the technology and energy sectors.