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Wall Street dips as crude spikes and chip stocks fall

The Nasdaq slid the most after oil jumped more than 60% this year amid Strait of Hormuz supply worries and a hurricane-related cut in US output.

Reported · Written up by our desk · Indices

Wall Street turned lower on Thursday, driven by a surge in crude prices tied to heightened Middle East tensions and concerns about inflation and potential rate hikes, according to Reuters via LiveMint Markets. Semiconductor shares also weighed on sentiment.

All three major US stock indexes fell, with the tech-heavy Nasdaq declining the most, while chipmakers dropped 3.0%. Chip stocks have risen more than 80% so far this year, but investors appeared to shift toward profit-taking.

Rising interest rates are also seen as a potential headwind to the rapid AI buildout, which has leaned heavily on debt for funding. The crude rally followed attacks on shipping in the Strait of Hormuz, along with a cut in US output due to hurricane activity.

Reuters noted that tight global crude supplies during the Iran war have lifted US crude more than 60% year to date, adding to inflation pressure as markets look ahead to the start of earnings season next week. Peter Cardillo of Spartan Capital Securities said high oil prices are contributing to a nervous, cautious market tone.

Latest closeWTI crude $89.70 ▼1.6%|Nasdaq Comp. 27,477.31 ▲1.1%

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