Markets plunge on Iran war fears, AI spending surge — SkimNews
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- Nasdaq plunged amid a sharp sell-off in tech stocks, driven by worries over geopolitical risks and high AI-related capital expenditures
- S&P 500 declined significantly as investors rotated out of AI-exposed chipmakers and into defensive assets like healthcare and bonds
- 10-year Treasury yield sank below 5% as investors flocked to safer assets, reflecting heightened risk-off sentiment in financial markets
- Oil prices rose on escalating fears of conflict involving Iran, amplifying inflation concerns and weighing on equity valuations
- US futures slipped as global markets reacted to mounting pressure from both macroeconomic uncertainty and sector-specific spending risks
Why it matters: Tech investors face mounting pressure as capital shifts from AI-driven equities to safer assets, with the 10-year yield drop signaling deepening risk aversion. The dual shock of geopolitical instability and unsustainable AI spending plans is forcing a repricing of growth expectations, hitting valuations across the Nasdaq and S&P 500.
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