What happens when the AI stock market bubble bursts?
The hottest stocks in the market – Apple, Nvidia, and Meta – reflect the hype from past crashes. Will AI optimism crumble soon?
Stocks closed mostly lower on July 8 after President Donald Trump hinted that the Iranian ceasefire could end.
The Dow Jones ended the day down nearly 600 points, losing just over 1% of its value. The S&P 500 fell 0.3%. The tech-heavy Nasdaq, already enduring a slide in recent weeks, rose 0.2%.
Markets slumped following new military attacks between the United States and Iran, a development that led President Trump to declare that the ceasefire in the Iran war is likely over.
“I think it’s over for me. I don’t want anything to do with them,” Trump said in Ankara, Turkey, where he was attending a North Atlantic Treaty Organization (NATO) summit.
The news sent oil prices higher as conflicts in the Middle East tend to limit supply.
Oil prices have soared to their highest level in recent weeks. Brent crude, the world benchmark, rose 6% to $74.50 a barrel.
Energy stocks rose on the day as higher oil prices accelerated profits for oil companies. However, the stock prices of some consumer goods companies have fallen, and soaring energy prices could hamper their operations.
The stock market had little reaction to the release of the June Federal Reserve minutes, which did not result in a change in the benchmark interest rate. The minutes revealed the inner workings of the central bank and showed that bankers are divided over the future direction of interest rates.
Most traders expect interest rates to rise by the end of the year, according to the CME FedWatch forecasting tool.
This story has been updated to add new information.
Contributor: Rachel Barber, USA TODAY
