Overview
- A sharp jump in oil after Houthi attacks and continued U.S.-Iran strikes pushed Brent briefly above $100, triggering a broad market selloff driven by worries about higher fuel costs and supply disruption.
- Alphabet’s revised capex outlook to about $205 billion and Tesla’s surge in spending exposed heavier AI-related cash burn and prompted steep losses in large-cap tech that weighed most heavily on the Nasdaq.
- Oil prices retreated later in the week after Reuters reported Pakistan, with Chinese backing, sought to restart U.S.–Iran talks, which eased some immediate inflation pressure but left markets fragile.
- The U.S. rolled out a wide new tariff round on many imports, which market participants say could add to input costs for companies and complicate the Fed’s inflation outlook and rate decision next week.
- Investors rotated into defense, energy and selected semiconductors while demanding clearer evidence that massive AI investments will generate returns, and consumers face the risk of higher gasoline and goods prices if oil and tariffs persist.