Markets tumble as concerns about Iran war and high AI spending collide

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

The S&P 500 closed down 1.2%, while the tech-heavy Nasdaq dropped 2.6%. The price of international Brent crude climbed nearly 4% to $113 a barrel, its highest level since May, while U.S. crude gained more than 2% to close at more than $99 a barrel.

Demand for Treasury bonds also increased — bucking the trend of the past several weeks — as investors sought out the safe-haven assets amid riskier ones like tech stocks selling off. The yield on the 10-year Treasury note fell below 5% for the first time since late September.

The market moves were sparked in part by reports that Israel and the U.S. were 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, NBC News reported.

Iranian officials have promised widespread retaliation to any strikes, pointing to critical…

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