U.S. Stock Markets Decline as Surging Oil Prices Pressure Investors

The three major U.S. stock indices closed lower across the board.

The Dow Jones Industrial Average, which hit a record high in the previous trading session, ended slightly lower, while the Nasdaq Composite fell by more than 1%, and the S&P 500 also declined.

By sector, industrials and materials dropped by 2%, and technology stocks, which had been leading the market rally, also plunged by nearly 2%, dragging down the indices.

The market faced pressure from doubts regarding the sustainability of the artificial intelligence rally and a sharp surge in international oil prices.

As oil prices spiked due to Middle East risks, the yield on the 10-year U.S. Treasury note surpassed the 4.5% threshold. Concerns over inflation resurfaced, significantly dampening investor sentiment.

In Asian markets, Samsung Electronics saw its shares plummet following its earnings report, spreading caution across the global semiconductor sector.

There is a prevailing sentiment in the market that we have entered a verification phase, where increased investment in AI must justify current high valuations.

Reports of China's DeepSeek developing its own AI chips also acted as a negative factor, triggering profit-taking in semiconductor stocks.

However, a rotation of funds into neglected sectors such as finance and healthcare provided some support to the downside.

Meanwhile, shares of aerospace company SpaceX, recently added to the Nasdaq 100 index, fell by more than 6% as risk-aversion sentiment spread.

The market is now awaiting the release of the minutes from the Federal Open Market Committee (FOMC) meeting, scheduled for early tomorrow morning, Korea Standard Time.
※ Please note: This article was translated by AI and may contain errors.