Sinking AI stocks and higher oil prices weigh on Wall Street

Key Points:

• Wall Street's record rally paused as AI stocks declined and oil prices surged due to ongoing conflict in Iran, with the S&P 500 falling 0.5% and the Nasdaq dropping 1%.
• AI-related stocks led losses, with Nvidia down 2.8%, Oracle 4.9%, and CoreWeave 6.3%, amid concerns over OpenAI's spending and missed revenue targets, raising questions about the sustainability of AI investments.
• Oil prices rose sharply, with Brent crude increasing nearly 3% as the Iran war and closure of the Strait of Hormuz disrupt supply, pushing gasoline prices in the U.S. to $4.18 per gallon, the highest since 2022.
• Coca-Cola shares gained 5.1% after exceeding profit and revenue expectations, while oil companies like Exxon Mobil and ConocoPhillips also rose on higher crude prices.
• The Federal Reserve is expected to keep interest rates steady amid inflation concerns, with a Senate committee set to vote on Kevin Warsh as the potential next Fed Chair; international markets mostly declined, influenced by geopolitical and economic uncertainties.