Home / Business and Economy / Tech Tumbles as Oil Prices Spike on Geopolitical Tensions
Tech Tumbles as Oil Prices Spike on Geopolitical Tensions
18 Jul
Summary
- Major stock indexes closed lower, led by tech shares, with Nasdaq down 2.9%.
- Oil prices jumped significantly due to escalating U.S.-Iran tensions.
- Netflix shares hit a two-year low as revenue growth forecast slowed.
Major stock indexes finished the week lower, with technology shares once again leading the downturn. The tech-heavy Nasdaq Composite experienced a weekly loss of 2.9%, while the S&P 500 dropped 1.6%, and the Dow Jones Industrial Average fell 0.9%. This marked the first time since early June that all three major indexes posted weekly losses.
Simultaneously, oil prices saw a substantial increase, fueled by escalating geopolitical tensions between the U.S. and Iran. West Texas Intermediate futures rose approximately 4% to $82.15 a barrel, and Brent crude futures advanced 4.2% to $87.75 a barrel. This surge occurred as U.S. Central Command reported striking dozens of Iranian military targets.
In the corporate world, Netflix shares plunged 7.5% to a two-year low following the streaming giant's announcement of anticipated slowing revenue growth in the third quarter. Other notable tech stocks also declined, with Alphabet's shares pulling back amid reports of delays in its flagship AI model development.
