Brent crude oil prices rose by 2.6% to $111.66 per barrel on Thursday, reaching a five-month high. This surge in energy costs coincided with a broad decline in global stock markets, including the S&P 500, which dropped 0.8%, and the tech-heavy Nasdaq, which fell 1.5%.
Major technology stocks faced significant pressure. Nvidia shares declined by 2.3%, while Meta dropped 5.8% following an earnings miss. CoreWeave, a cloud provider focused on AI chips, saw its value decrease by 3.8% amid debt concerns, and chip equipment manufacturer Lam Research fell 7.7% after providing soft profit guidance.
Asian markets experienced sharp losses as well. The South Korean Kospi index dropped 3.52% to 5,533.77, following a 7.57% plunge on October 15. Japan's Nikkei 225 fell 2.65%, and Hong Kong's Hang Seng lost 3.03%. Meanwhile, the Chinese CSI 300 index officially entered a bear market.
Market sentiment remains cautious ahead of upcoming economic events. The Federal Reserve is scheduled to announce its next decision on October 28, with a 15% probability of a rate hike currently priced in. Additional data releases, including core PCE inflation and payroll figures, are expected on October 29 and November 6.
