US stocks finished mostly lower on Thursday as renewed concerns about artificial intelligence spending triggered heavy selling in technology shares, while rising oil prices added to geopolitical uncertainty.
The Nasdaq Composite plunged 2.6% to 26,008.86, its worst session since June, while the S&P 500 dropped 1.21% to 7,663.43. The Dow Jones Industrial Average edged up 11.89 points, or 0.02%, to 52,867.98.
Meta Platforms fell around 7% despite reporting stronger-than-expected revenue, as investors focused on the substantial funding required for its AI expansion. AMD tumbled more than 8%, Micron Technology lost 6%, and Nvidia declined 4%.
The Philadelphia Semiconductor Index dropped 5.6%, while CoreWeave plunged 10% as concerns about debt-funded AI infrastructure intensified.
Nvidia chief executive Jensen Huang said demand for cloud computing capacity remained exceptionally strong but acknowledged that limited access to capital was constraining growth. The comments reinforced investor concerns about the financing of large-scale AI projects.
Oil prices surged amid reports of possible renewed US and Israeli strikes against Iran. Brent crude rose 4% to US$113.17 a barrel, while West Texas Intermediate gained 2.39% to US$99.47.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures down 21 points, or 0.2%, to 8,786.
The weaker lead follows sharp declines in US technology stocks, although higher oil prices could provide support for local energy producers.
Investors will also monitor movements in global bond yields and developments in the Iran war, with concerns about inflation and AI financing continuing to influence sentiment.
Locally, Treasurer Jim Chalmers will speak at the Citi A50 Australian Economic Forum in Sydney. Whitehaven Coal is scheduled to release quarterly results, while Temple & Webster will hold its annual general meeting.
