AI stocks slump again, while oil prices keep rising

AI chipmakers and related stocks led global market declines Thursday, with the S&P 500 falling 0.3%, the Nasdaq dropping 0.9%, and South Korea's Kospi plunging 6.4% after the Bank of Korea's first rate hike since 2023. Brent crude rose another 0.6% to $85.43 per barrel near a one-month high as fighting between the US and Iran over the Strait of Hormuz raises fears of disrupted oil tanker routes from the Persian Gulf.

Why it matters: The oil price surge pushed the 10-year Treasury yield to 4.58%, while mixed US economic data—weak retail sales offset by strong jobless claims and manufacturing—added to market uncertainty about whether central banks will need to raise rates further.