US stocks: S&P 500, Nasdaq end lower as crude prices jump, chip stocks weigh
US stock indices slid on Thursday as crude oil prices surged, prompted by intensifying Middle East tensions. Major benchmarks, including the S&P 500 and Nasdaq Composite, saw a drop that illustrates growing investor jitteriness. The chip sector struggled after a revenue target cut for OpenAI was disclosed, amplifying market fluctuations.
U.S. equities ended lower on Thursday as oil prices surged due to Middle East tensions and a reduction in U.S. crude output, causing worries about inflation and the prospect of higher interest rates. The S&P 500 fell 36.07 points (0.46%) to close at 7,765.70, while the Nasdaq Composite dropped 341.59 points (1.24%) to 27,197.10, with the tech-heavy index posting its steepest percentage decline in two days.
The Dow Jones Industrial Average slipped 45.68 points (0.09%) to 51,225.48. The decline was attributed to the Financial Times report that OpenAI's annualized revenues were significantly lower than previously claimed, negatively impacting semiconductor stocks, which have seen an 80% year-to-date increase. Oil prices surged on supply concerns from attacks on shipping in the Strait of Hormuz and U.S. production cuts driven by hurricane activity.
WTI and Brent crude settled up 3.6% and 4.1%, respectively. The Federal Reserve raised interest rates for the first time since July 2023 to combat inflation. The market is currently in a neutral stance awaiting third-quarter earnings and the looming conflict in Iran, which continues to drive up oil prices.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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