U.S. equity markets experienced a sharp sell‑off on Thursday, driven by concerns that Israel and the United States might resume attacks on Iran, which pushed oil prices up and caused major tech stocks to lose recent gains.
following the November midterm elections.
Potential targets are Iran’s energy infrastructure and nuclear facilities. The Nasdaq’s decline was further fueled on Thursday morning when Nvidia CEO Jensen Huang told CNBC that funding for the AI investment surge was becoming “scarce” because of higher interest rates and a surplus of existing spending commitments.
U.S. markets are still close to record highs, yet indications that returns from the AI investment boom are waning have led to heightened volatility recently.
A significant sell‑off in French government bonds has also pulled European equities down in recent weeks.
Henry Allen, director and macro strategist at Deutsche Bank, wrote in a Thursday client note, “It’s been another difficult 24 hours for markets, as investors grapple with AI growth concerns, higher oil prices, and ongoing fiscal stress.”
A sizable market decline could further damage Republicans’ outlook for the midterm elections.
President Donald Trump often cites strong stock market performance as proof that his economic policies have enriched Americans. A notable market dip before the Nov. 3 election would weaken a key argument for Trump and the GOP.
