Global Stocks Slide as Brent Oil Tops $112 a Barrel
Global stocks fell as rising oil prices and renewed questions about returns on artificial intelligence spending unsettled investors. Brent crude rose above…
Global stocks tumble as oil climbs above $112 a barrel and investors question whether heavy artificial intelligence spending will deliver returns. Asian equities fell on Thursday, while U.S. stock futures also dropped as technology earnings and Middle East tensions weighed on markets.
The declines put pressure on investors across major markets. China’s CSI 300 fell 2%, bringing its retreat from June’s peak to 20%, while Japan’s Nikkei 225 dropped around 3% and South Korea’s Kospi fell 3.5%, according to CoinDesk.
Technology shares led losses in Asia. Brent crude rose above $112 a barrel, adding energy supply concerns to uncertainty over corporate spending on AI.
Oil risks and earnings unsettle markets
U.S. stock futures fell sharply on Thursday after major technology earnings revived questions about returns from large AI investments, according to the source report published by Stocktwits on Yahoo Finance. Nasdaq-100 futures declined 1.9%, S&P 500 futures slipped 1.1%, and Dow Jones Industrial Average futures fell nearly 0.7%.
December Brent crude futures reached $112.20 a barrel, while West Texas Intermediate futures approached $100. The report attributed the oil rally to escalating Middle East tensions and concerns about potential supply disruptions.
Stocktwits cited President Donald Trump’s statement on Wednesday that Washington was not negotiating with Tehran. Trump also suggested something would happen “fairly soon.” The report said drone attacks on Saudi Arabian targets, including an oil field, and Washington’s order for some embassy personnel to leave the kingdom added to concern about regional energy supplies.
The New York Times reported that U.S. and Israeli militaries had developed plans for possible renewed strikes on Iran after the midterm elections, citing officials familiar with the preparations. The report said no decision to carry out strikes had been confirmed.
That distinction matters for markets: the reported plans were not a confirmed military decision, while oil prices were already rising amid fears of further disruption. Higher crude prices can add pressure to energy costs, though the sources did not quantify any effect on consumers.
Investors also focused on whether AI-related capital spending can translate into stronger growth and earnings. Santiago Mateo, head of equity at CaixaBank Asset Management, told Bloomberg: “The market is still willing to reward heavy AI investment, but is becoming much more demanding about returns”.
Mateo said investors want evidence that investment is translating into stronger growth, better monetization and ultimately earnings.
Technology spending draws scrutiny
Lam Research fell more than 7% in premarket trading after its outlook for the December quarter roughly matched Wall Street expectations, despite record fiscal first-quarter revenue of $8.22 billion, Stocktwits reported.
Tesla shares fell nearly 5% after the company lowered its 2026 capital expenditure forecast to approximately $20 billion from more than $25 billion previously. Meta Platforms shares were also in the red after the company raised the lower end of its 2026 spending forecast to $135 billion from $130 billion, while keeping the upper end at $145 billion.
Selling also reached semiconductor stocks. Intel, Marvell Technology and Advanced Micro Devices each fell over 4%, according to the report.
In Asia, CoinDesk said Chinese technology shares traded in Hong Kong had their worst session since President Donald Trump’s April 2025 “Liberation Day” tariff announcement, citing Bloomberg’s David Ingles. Ingles said the technology benchmark had fallen more than 40% from its peak, while forward valuations had compressed to roughly 13 times earnings.
The selloff extended beyond equities. Bitcoin retreated toward $82,000, gold fell more than 1% to below $4,100 an ounce, and silver dropped over 3.5% to around $55, CoinDesk reported. Nasdaq-100 futures declined almost 2%.
Investors were also watching the U.S. economic calendar, with weekly initial jobless claims scheduled for release Thursday morning, according to Stocktwits. The market’s next test will include that labor-market reading alongside further corporate updates and developments affecting Middle East energy supplies.
Source: finance.yahoo.com
