Wall Street falls on U.S.-Iran tensions and AI spending fears
Wall Street had a rough Thursday: stocks slid as tensions between the US and Iran heated up, and investors got anxious about how much tech giants are spending on AI.
The S&P 500 dropped 1.4%, with Alphabet falling 6.6% after announcing bigger spending plans, and Tesla sliding 14% because profits didn't keep up even though electric vehicle sales were strong.
Oil tops $100 as yields jump
Oil prices shot past $100 a barrel, making everyone worry more about inflation and pushing Treasury yields to their highest of the year.
Now, there's a growing chance the Federal Reserve might hike rates again soon: expectations jumped from about 10% last week to roughly 35%.
Meanwhile, tech companies like Alphabet, Meta, Microsoft, and Amazon are set to spend $725 billion on AI this year, raising questions about whether these huge investments will actually pay off as costs rise.