S&P 500 Falls 0.4% as AI Stocks Slide and Brent Oil Hits $107.72
Updated
Updated · The Associated Press · May 12
S&P 500 Falls 0.4% as AI Stocks Slide and Brent Oil Hits $107.72
10 articles · Updated · The Associated Press · May 12
The S&P 500 slipped 0.4% from Monday’s record, while the Dow lost 185 points and the Nasdaq fell 0.6% in early Tuesday trading.
Micron dropped 3.9%, CoreWeave sank 5% and Broadcom fell 1.6% after an AI-led selloff spread from Asia, where South Korea’s Kospi tumbled 2.3% on profit-redistribution worries.
Brent crude climbed 3.4% to $107.72 as the Iran war kept the Strait of Hormuz effectively shut to tankers, extending oil’s jump from about $70 before the conflict.
U.S. inflation data came in hotter than expected, including core prices, pushing the 10-year Treasury yield up to 4.45% and reinforcing bets the Federal Reserve will keep rates higher for longer.
The pullback interrupted a resilient rally that had survived war-driven inflation and tariffs, though strong earnings still offered support, with Zebra Technologies jumping 17.3% after beating forecasts.
As the Strait of Hormuz closes, is China's deep support for Iran a strategic masterstroke or a catastrophic economic gamble?
The Strait of Hormuz is weaponized. Which of the world's other critical trade chokepoints will be the next to fall?
With a proposed 'AI dividend' tax spooking investors, is the entire global AI stock rally built on a fragile political foundation?
Oil Prices Surge Past $80 Amid US-Iran Conflict: Global Economic, Geopolitical, and Supply Chain Fallout in 2026
Overview
In early 2026, global oil prices surged sharply as escalating geopolitical tensions—especially the deepening conflict between the U.S.-Israel alliance and Iran—sparked immediate risk repricing in energy markets. Traders quickly embedded a premium into oil prices, anticipating future disruptions even before physical supply was affected. The crisis intensified after Yemen’s Houthis launched missiles at Israeli targets, following earlier U.S. and Israeli strikes on Iran. These events, combined with diplomatic failures, led to widespread market instability and fears of further supply shocks, highlighting how interconnected geopolitical events and market expectations drive rapid changes in global energy prices.