US stocks fell on Thursday as surging energy prices intensified concerns about stagflation. The S&P 500 and Nasdaq 100 each lost more than 1%, while the Dow declined 0.7%. Earlier in the day, President Trump had appeared to signal openness to a deal with Iran during a Cabinet meeting, but he later walked back that stance, reducing hopes for a near-term end to the conflict between the two countries that has contributed to a halt in Persian Gulf exports.
Treasury yields rose across the curve, driving up benchmark borrowing costs and weighing on speculative AI-related stocks. Shares of Micron, AMD, Intel, and Palantir each fell more than 4%. Memory-chip names also came under pressure after Alphabet released research on more efficient AI models, sending Lam Research and Applied Materials down about 4%.
Meta slid nearly 7% following an announcement of layoffs and after a US jury found that the company’s social media platforms are harmful to young people. In contrast, Jefferies edged higher despite its earnings highlighting emerging risks in the private credit market.
