Market sell-off gains steam as concerns about Iran war and high AI spending collide

U.S. equity markets sold off sharply Thursday, as fears that Israel and the United States would restart attacks against Iran sent oil prices higher and major tech stocks failed to hold onto recent gains.

The S&P 500 was down 1.4% by midmorning, while the tech-heavy Nasdaq saw declines of 2.2%. The price of international Brent crude climbed more than 2%, while U.S. crude gained more than 1%.

Demand for Treasury bonds also increased — bucking the trend of the last several months — as investors sought out the safe-haven assets as riskier ones like tech stocks sold off. That sent bond yields lower.

The broad sell-off was sparked in part by reporting Wednesday that Israel and the U.S. are preparing for a military operation in Iran after the November midterm elections.

Likely targets include Iran’s energy infrastructure and nuclear sites, according to The New York Times.

U.S. military and diplomatic personnel were also being evacuated from several countries in the Middle East on Wednesday, NBC News reported.

Iranian officials have promised widespread retaliation to any strikes, pointing to critical Middle East data center sites and undersea internet cables as potential targets.

Major tech stocks led the declines in early trading…

Original source: https://www.nbcnews.com/world