Oil Prices Fall Amid Escalating Tensions in Middle East
Stocks in the US gained ground on Friday as oil prices fell for the first time in a week. The S&P 500 rose by 0.4% despite being on track for its second consecutive losing week since March.
The Dow Jones Industrial Average increased by 296 points or 0.6%, while the Nasdaq slipped 0.1%. Several big stocks, including Micron Technology and Broadcom, weighed heavily on the market with losses of 5.3% and 1.9% respectively.
The global energy market is under pressure due to escalating tensions in the Middle East, which has threatened to slow down oil and gas production. The Strait of Hormuz remains closed, further weakening energy buffers such as strategic reserves in the US.
Investors are concerned about the impact on companies' profits, particularly those focused on AI technology. Alphabet and Nvidia have been investing heavily in AI research but investors question whether these investments will yield significant returns to justify their stock values.