Global stock markets fall as rising oil prices and West Asia tensions rattle investors

KATHMANDU: Major global stock markets declined sharply on Friday as rising oil prices and escalating tensions in West Asia increased fears over inflation and economic uncertainty.

International media reported that concerns over disruptions to global crude oil supplies pushed investors toward caution, dragging down key stock indices in the United States and other major markets.

Technology stocks, particularly companies linked to artificial intelligence (AI), were among the hardest hit during the sell-off.

The S&P 500 fell around 1.2 percent from the record high it reached a day earlier, while the Dow Jones Industrial Average dropped 537 points.

Similarly, the tech-heavy NASDAQ Composite declined nearly 1.5 percent.

Analysts said the market correction followed months of strong gains driven largely by investor enthusiasm surrounding artificial intelligence technologies.

Shares of NVIDIA, considered one of the leading firms in the AI sector, fell 4.4 percent during Friday’s trading session. Despite the decline, the company’s stock has still gained more than 26 percent so far this year.

Likewise, Micron Technology saw its shares drop 6.6 percent, although the company’s stock remains up around 154 percent this year.

Market analysts said the recent downturn was partly a natural correction after rapid gains in global stock markets over recent months.

They noted that strong corporate earnings and the resilience of the US economy had previously driven markets to record highs, but warned that growing geopolitical tensions and rising energy costs could create challenges ahead.

Meanwhile, crude oil prices have continued climbing due to the ongoing conflict in West Asia.

Analysts said tensions involving Iran have increased concerns over the stability of the Strait of Hormuz, one of the world’s most critical oil shipping routes.

Disruptions to oil tanker movement through the route have reportedly affected global crude oil supplies, adding pressure to worldwide inflation.

Experts say the rise in oil prices has deepened uncertainty in the global economy, with stock markets directly reflecting investor concerns over the worsening situation.