AI selloff and $110 oil shake global markets

· Finance · United States

Wall Street suffered a twin shock this week: a deepening rout in artificial-intelligence stocks that spread into AI-related debt financing, and Brent crude touching $110 a barrel as Middle East attacks escalated. Big Tech posted its biggest weekly drop since "liberation day," with software and semiconductor shares falling together after months of diverging. CoreWeave slid 25% over the week as credit concerns around AI borrowing grew. Investors moved into government debt, halting a months-long Treasury sell-off, while the Nasdaq's technical picture suggested the pullback may not be over. Oil's rise makes inflation harder to contain just as rate fears already weighed on valuations, leaving portfolio managers balancing two risks they had spent the year trying to separate.

Why it matters：The simultaneous AI repricing and oil spike tests whether the technology-led bull market can absorb higher financing costs and renewed inflation risk, shaping allocation decisions across global equities and credit.

Key points

  • Brent crude hit $110 a barrel as Iran escalated attacks in the Strait of Hormuz.
  • Big Tech recorded its biggest weekly decline since "liberation day," pulling software and chip stocks down together.
  • CoreWeave fell 25% for the week amid mounting concerns over AI-related credit.
  • Government debt rallied, halting a months-long Treasury sell-off.

Sources (original reporting)

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