Oil prices fell below $80 following the U.S. waiver of Iranian oil sanctions, which could allow more Iranian crude to enter global markets, alleviating supply concerns.
This decision coincided with a decline in major tech stocks, including Alphabet, Amazon, Meta, and Microsoft, which dropped between 2% and 5% due to worries about artificial intelligence and increasing yields that typically affect growth stocks negatively.
SpaceX shares plummeted 16%, erasing $400 billion in market capitalization after announcing plans to raise up to $20 billion in fresh capital shortly after its IPO. The market also reflected on the legacy of former Fed Chair Alan Greenspan, who passed away at age 100, as investors draw parallels between past economic cycles and current AI market enthusiasm.
In the U.K., political instability continues as Keir Starmer resigns, potentially paving the way for Andy Burnham to become the next prime minister, with investors keenly observing his policy direction amidst concerns over the country's debt and economic growth.
Additionally, Chevron announced a significant 20-year agreement to supply natural gas to a Microsoft data center in Texas, which will require substantial energy resources