Key facts
- Asian shares declined, mirroring a Wall Street sell-off driven by AI stock declines.
- U.S. stock futures advanced while oil prices gained more than $1 a barrel.
- The S&P 500 dropped 1.6%, the Dow Jones Industrial Average tumbled 1.9%, and the Nasdaq composite slid 2%.
- Super Micro Computer shares fell 28% after announcing a $7 billion stock and convertible preferred stock offering.
- Nvidia fell 3.7% and Broadcom fell 5.1%, weighing on the S&P 500.
- Brent crude oil rose 1.8% to $93.10, with U.S. benchmark crude oil reaching $91.53.
- U.S. consumer prices jumped in May at the highest rate in three years.
Asian shares mostly declined, mirroring a sell-off in artificial-intelligence stocks that dragged U.S. markets lower. U.S. stock futures advanced, and oil prices gained more than $1 a barrel amid renewed tensions between the U.S. and Iran.
Tokyo's Nikkei 225 lost 0.5% to 63,878.60, while South Korea's Kospi was down 0.2% at 7,720.75. Hong Kong's Hang Seng edged 0.2% higher to 24,468.82, but the Shanghai Composite index fell 0.2% to 3,983.80. In Australia, the S&P/ASX 200 shed 0.2% to 8,632.50, and Taiwan's Taiex slipped 0.4%.
On Wall Street, the S&P 500 dropped 1.6% for its first back-to-back decline in three weeks, closing at 7,266.99. The Dow Jones Industrial Average tumbled 953 points, or 1.9%, to 49,918.78, and the Nasdaq composite led the market lower with a 2% slide to 25,169.50.
AI stocks have faced scrutiny, with concerns that their prices may have risen too high, too fast. Super Micro Computer, an AI server seller, tumbled 28% after announcing plans to raise $7 billion through stock and convertible preferred stock sales. Nvidia fell 3.7%, and Broadcom dropped 5.1%, contributing to the market's decline.
Weakening stocks for companies with high fuel costs also impacted the market. United Airlines sank 6.2% and cruise operator Carnival fell 6.3% after oil prices rose due to the conflict with Iran. Brent crude oil rose 1.8% to $93.10, with U.S. benchmark crude oil gaining $1.50 to $91.53 per barrel. President Donald Trump warned Iran would "pay the price" for stalled negotiations, and the conflict has impacted shipping through the Strait of Hormuz.
A report on Wednesday showed U.S. consumer prices jumped in May at the highest rate in three years, leading traders to bet the Federal Reserve may hike interest rates this year. The U.S. dollar slipped to 160.44 Japanese yen, while the euro rose to $1.1555.