Oil price surge pushes US stocks lower, Australian market set to dip
Oil prices jumped 3% to about $120 a barrel, sending US stock indices lower and prompting a projected 0.5% decline in Australia’s ASX 200 at open.
Global oil prices surged 3% to around $120 per barrel, reaching highs last seen during the early US-Iran war, and this spike dragged major US indices down on Friday, with the S&P 500 off 0.5%, the Dow down 1.2% and the Nasdaq slipping 0.2%. While the energy segment of the S&P 500 rose 2.5% to a record, telecom shares fell sharply after a report that SpaceX is seeking thousands of cell sites for a new carrier, pulling down AT&T, T-Mobile and Verizon.
Futures trading pointed to a 0.5% opening decline for Australia’s ASX 200, echoing the broader risk-off mood. US consumer sentiment edged near a record low in October, according to the University of Michigan, as higher prices from the Middle-East conflict dampen outlooks. The market focus remains on upcoming earnings from firms like Alphabet, Microsoft and Amazon, and on the Federal Reserve’s policy meeting next week, while gold slipped below $4,000 an ounce.
Why it matters
Rising oil prices are weighing on global equity markets and could affect investors worldwide.
How this story developed
- Oct 6 US and China clash over AI chips, model copying, safety and robotics
- Oct 15 Apple received clearance to embed Alibaba models in its AI system for the Chinese market.
- Oct 17 Nvidia chief Jen-Hsun Huang said Germany is falling behind in technology while unveiling the RTX Spark laptop chip in Berlin.
- Oct 20 AI-focused shares fell after a brief rebound, while oil prices rose on Middle-East tensions and investors await upcoming earnings reports.
- Oct 20 Huang shifted from criticizing Germany’s tech lag to urging broader AI adoption and private investment.
- Oct 21 Tesla reported Q3 revenue of $28.05 billion, beating forecasts, while vehicle deliveries rebounded and AI spending reduced earnings.
- Oct 22 Tesla disclosed that AI spending weighed on Q3 profit.
- Oct 22 AI funding concerns and higher oil prices have pushed U.S. markets lower since the earlier rally.
- Oct 24 Oil prices climbed to a five‑month high above $115 a barrel, intensifying pressure on equities.
- Oct 25 The emergence of rival US‑led and China‑led AI blocs has become a central feature of the story.
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