NEW YORK — The artificial-intelligence stock selloff roared back on Tuesday while Brent crude oil pushed above $110 a barrel for its highest level since May, snapping the tentative rebound Wall Street managed a day earlier.
Nasdaq futures were down about 0.7%, S&P 500 futures fell 0.3%, and Dow futures were roughly flat in early trading, according to The Wall Street Journal and Investopedia — putting an abrupt brake on the Nasdaq’s 1%+ rally on Monday.
The pressure came from both the AI trade and the oil market. AI infrastructure stocks slid worldwide: South Korean data-center startup Elice plunged roughly a third on its stock market debut, Swiss engineering group ABB fell about 6% even after raising its full-year guidance, and CoreWeave — whose soaring credit costs helped spark last week’s rout — dropped around 3% to 4% in premarket trading.
Meanwhile, front-month Brent crude contracts topped $110 a barrel, on track for the highest close since May 19, as supply risks in the Middle East mounted. Analysts at ANZ pointed to a marked increase in attacks on ships in the Persian Gulf. WTI crude rose 2.5% to about $106.20 a barrel, its highest since April, Investopedia reported.
The twin pressures hit from opposite directions: rising oil raises inflation risk while weak AI names drag the growth engine of the stock market.
Bonds rally, Fed hike bets collapse
Treasury bonds strengthened as investors fled to safety. The 10-year Treasury yield fell to about 5.11%, down from Monday’s close near 5.14%, while the 30-year yield hovered around 5.455%, the Journal reported.
Markets have sharply scaled back expectations of an October Federal Reserve rate hike. Investors are pricing in a more than 80% chance that the Fed holds rates steady at its October 27–28 meeting, according to LSEG data, with the central bank now in its pre-meeting blackout period.
The dollar weakened. Gold futures slipped below $4,150 an ounce, and bitcoin fell about 0.7% to around $81,300.
What it means for your money
Oil above $110 is the most direct threat to household budgets: it pushes gasoline and diesel prices higher and raises shipping costs that eventually show up in store prices. A cheaper 10-year Treasury yield, if sustained, is some relief for borrowers — it influences mortgage rates and consumer loan costs — but at 5.11% it remains near multi-decade highs, so borrowing stays expensive.
Also on Tuesday’s calendar: Netflix and SpaceX report earnings after the closing bell, and General Motors, United Airlines, and 3M reported results in the morning. The federal government has banned Chinese AI model DeepSeek from government agency use, according to Investopedia.
This is an ongoing story. Markets remain open and figures may move through the session.
Sources: The Wall Street Journal; Investopedia; Morningstar.
