Global Markets Slide on AI Fears and Middle East Tensions
The global stock market experienced a downturn on Friday as fears of an artificial intelligence bubble and ongoing tensions in the Middle East weighed heavily on investor sentiment.
Shares in technology-heavy Asia markets took a hit, with the Nikkei 225 declining by 2.7% to 64,611.15, led by losses for tech companies such as SoftBank Group, which tumbled 7.1%. Other AI-related U.S. stocks remained stable.
The crisis in the Middle East has been a major concern for markets, with tensions between Iran and Saudi Arabia leading to increased uncertainty over oil supply. Brent crude prices retreated $3.02 from the previous day's high of $102 per barrel, settling at $97.67, while U.S. benchmark crude slipped $2.43 to $89.76.
The average cost for a gallon of regular gas surpassed $4.10 overnight, according to AAA, which could force central banks to raise interest rates and slow economies.