US Markets Crash: There was an outcry in the American markets, Nasdaq fell by more than 2%; This was the main reason for heavy selling in tech stocks; US markets plunge, Nasdaq plunges over 2%; this is the main reason for the heavy selling in tech stocks

Big and worrying news is coming out from the global markets at this time. Due to the ever-deepening geopolitical crisis in West Asia (Middle East), uncontrolled surge in crude oil prices and weak quarterly results of giant tech companies Alphabet and Tesla, there was a huge selloff in the American stock market on Thursday. Due to increasing concerns of investors and huge expenditure on Artificial Intelligence (AI), the mood of the market completely deteriorated, the direct effect of which was clearly visible on the major US indices.

Heavy decline in Dow Jones and Nasdaq, biggest pressure on tech stocks

All-round selling dominated the American markets in Thursday’s trading session. A huge decline of more than 600 points, or more than 1 percent, was recorded in the Dow Jones Industrial Average. At the same time, there was a huge weakness of 1.3 percent in the broad market index S&P 500 and more than 2.2 percent in the Nasdaq Composite, which has a majority of technology stocks. Especially the anger of the investors was expressed on the tech sector, in which the shares of Alphabet fell by almost 6 percent and the shares of Tesla fell by 14 percent, due to which the investors got a big shock.

Rise in crude oil prices and increasing tension in West Asia

The biggest reason behind this historic fall in the American markets was the huge rise in crude oil prices. The clouds of war in West Asia have deepened after Yemen’s Iran-backed Houthi rebels claimed attacks on two Saudi Arabian oil tankers in the Red Sea. Additionally, US President Donald Trump’s warning against targeting Iran’s infrastructure has added fuel to the fire. According to reports, the Trump administration is considering the option of launching the biggest ever attack on Iran, which threatens to completely stop shipping and oil supplies in the Strait of Hormuz. Due to all these developments, the prices of Brent crude jumped by 6 percent and after a long time once again crossed the psychological level of $ 100 per barrel, while WTI crude also crossed $ 92.

Increasing expenditure on AI increases investors’ tension

Apart from inflation and geopolitical tensions, data from the corporate front has also given investors sleepless nights. Alphabet (Google) has raised its capital expenditure (Capex) estimate for the year 2026 from the earlier $180-190 billion to $195-205 billion. This indiscriminate spending in Artificial Intelligence (AI) technology has created uncertainty in the minds of investors, the impact of which was seen on the shares of Alphabet as well as other big tech companies like Meta, Microsoft and Amazon. Market experts believe that until the Middle East crisis is resolved and crude oil prices calm down, this period of turmoil and uncertainty may continue in the global markets.