AI stocks slump again, while oil prices keep climbing

AI-related stocks including Nvidia, Micron, Sandisk, and Western Digital led global market declines as investors worry about inflated valuations and whether AI demand will deliver promised profits. Oil prices rose to $85.43 per barrel for Brent crude amid ongoing US-Iran fighting over the Strait of Hormuz, raising concerns about supply disruptions and prompting fears of further central bank rate hikes.

Why it matters: The S&P 500 fell 0.3% and the Nasdaq dropped 0.9%, while South Korea's Kospi plunged 6.4% after the Bank of Korea's first rate hike since 2023, though Hong Kong's Hang Seng rose 1.3% on Alibaba's Apple Intelligence integration news.