Dow Sinks 1.23% as AI Spending Fears and Rising Oil Rattle Wall Street

Dow Sinks 1.23% as AI Spending Fears and Rising Oil Rattle Wall Street

Wall Street ended the week deep in the red on Friday as a sell-off in technology shares, fuelled by anxiety over the payoff from massive artificial intelligence spending, spread across the market, while rising Middle East tensions pushed crude oil prices higher. The Dow Jones Industrial Average fell 1.23 percent on the day.

Investors have grown nervous about whether the huge sums pouring into AI infrastructure will deliver returns quickly enough, and that doubt hit chip stocks and other tech names hard. At the same time, oil markets climbed on supply worries: Brent crude rose about 1.2 percent to $114.57 a barrel after touching $115, driven by Middle East supply concerns following attacks in Saudi Arabia.

The combination of falling tech shares and rising energy prices made for a rough end to the week for global markets. Energy costs feed into transport and manufacturing, so higher oil prices add to inflation worries just as investors are questioning the AI boom. Markets will now look to the next round of earnings and any easing in Middle East tensions for direction.

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