Asian equities were generally lower Friday as the latest sell-off in artificial intelligence stocks dragged markets worldwide, giving the benchmark S&P 500 its worst day since July. Oil prices were at their highest level since May, supported by fears of a war with Iran, with Brent oil trading at $113.73 a barrel early Friday, up 0.5% following a 4% surge in the previous session. Brent settled at $113.17 Thursday.
U.S. benchmark crude, West Texas Intermediate, climbed 0.6% to $100.08 a barrel. Oil jumped on Thursday, with deadly strikes in Saudi Arabia sparking fears that a full-scale regional conflict might further limit global energy supply. U.S. shares sank on Thursday, with the S&P 500 dropping 1.2% and the Nasdaq composite losing 2.6%. The downturn in tech companies was so broad it obscured strength elsewhere in the US market where most stocks really increased.
The Dow Jones Industrial Average was up less than 0.1%. AI-related companies have been see-sawing on fears that their boom may be under threat because borrowing costs to build data centers and buy more AI processors are high. Companies in the business posted growth, but investors fear share prices soared too high amid a years-long frenzy. Meta Platforms, which is promoting its Muse AI agent, slid 7% after posting higher sales than analysts expected for the latest quarter, but its profit missed.
Facebook and Instagram’s owner said it would also create a new class of shares without voting rights, giving it another way to fund AI investments and other expenses while keeping voting power with current shareholders.
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