Dow futures tumble 600 points as Brent crude tops $100, Alphabet and Tesla drop: Live updates - CNBC
U.S. stock markets experienced a sharp decline as oil prices surged following Houthi attacks on Saudi tankers and heightened tensions with Iran. Investors are also reacting to disappointing earnings from major tech companies like Alphabet and Tesla.
Why it matters
The combination of geopolitical instability in the Middle East and cooling tech sector growth poses a significant risk to global market stability.
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 Industrial Average lost 506.93 points, or 0.97%, to end at 51,711.65. The S&P 500 dropped 1.21% to 7,408.30, while the Nasdaq Composite declined 2.15% to close at 25,137.69. The tech-heavy index was bogged down by a 7% drop in Alphabet and a 14% loss in Tesla following their earnings reports.
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. Prices also moved higher after U.S. President Donald Trump threatened to bomb Iranian infrastructure.
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