U.S. equities fell on Thursday, as oil prices surged amid escalating conflict in the Middle East, while investors weighed quarterly results from two of the largest companies in the world, with Alphabet’s fueling concerns about increased artificial intelligence spending.
The Dow Jones Industrials took a walloping, down 507.29 points, or 1%, to 51,711.29.
The S&P 500 gave back 90.84 points, or 1.2%, to 7,408.13
The NASDAQ Composite plunged 553.21 points, or 2.2%, to 25,137.69
Oil prices put more pressure on stocks, as they soared after Yemen’s Tehran-backed Houthi militant group claimed attacks on two Saudi Arabian tankers in the Red Sea, fueling concerns about an expansion of the conflict in the Middle East.
Hyperscalers Meta Platforms, Microsoft and Amazon were also in the red Thursday.
Tesla also dropped 14% after the electric vehicle maker posted a big earnings miss for the second quarter. The company’s operating expenses also rose faster than revenue during the period.
Both Tesla and Alphabet posted negative free cash flow for the second quarter.
Prices also moved higher after U.S. President Donald Trump threatened to bomb Iranian infrastructure.
Prices for the 10-year Treasury fell sharply, raising yields to 4.7% from Wednesday’s 4.66%. Treasury prices and yields move in opposite directions.
Oil prices soared $4.75 to $91.58 U.S. a barrel.
Gold prices gave back $100.60 to $4,051.30 U.S. an ounce.
