AI concerns continue to hit Big Tech stocks Friday as oil prices rise again

Big Tech stocks continued to experience concerns on Friday, as oil prices rose once more, causing Wall Street to open lower. The S&P 500 fell 0.5%, Dow Jones Industrial Average dropped 547 points (1%), and Nasdaq composite declined 0.4%. The weight of worries about the cost of developing artificial intelligence (AI) technology had previously impacted stocks throughout the week.

Meta Platforms, which operates Facebook and Instagram, experienced a slight decline in early trading after reporting stronger-than-expected revenue for the latest quarter but lower than anticipated profits. The company also announced plans to create a new class of stock to raise money for AI investments and other expenses.

Meanwhile, Tesla showed a slight improvement in premarket trading after reporting a stronger profit for the summer than analysts expected, despite weaker-than-forecast revenue. Nvidia, the largest company on Wall Street by total value, saw a small gain before the market opened but had dropped 4.4% at Thursday's close amid the global tide against AI stocks. The chip giant carries significant weight on the S&P 500 due to its movements affecting the index more than any other.

In Europe, the Toronto Stock Exchange and European markets experienced declines, with France's main index falling 1% and Germany's DAX and CAC 40 dropping 0.8% and 0.7%, respectively. The yield on the 10-year Treasury increased to 4.97%, while oil prices reached levels not seen since May. Brent crude oil prices rose 1.8% to just above $115 a barrel, and U.S. benchmark crude oil jumped 1.8% to $101.22 per barrel.

Gasoline prices in the U.S. also rose again, with the national average for a gallon of regular gas increasing to $4.29, according to AAA.