Brent Hits $114.10 5-Month High as Asia Tech Selloff Eases After Nasdaq Drops 2%
Updated
Updated · Reuters · Oct 23
Brent Hits $114.10 5-Month High as Asia Tech Selloff Eases After Nasdaq Drops 2%
3 articles · Updated · Reuters · Oct 23
Summary
Brent crude rose 0.9% to $114.10 a barrel, a five-month high, while Asia's tech-led equity selloff lost momentum after Wall Street's overnight rout.
Nasdaq shares had slumped more than 2% as AI funding fears deepened, with Meta tumbling nearly 8% after reporting its first cash outflow in over a decade and Tesla falling 3.1% after cutting 2026 capex plans.
Asian markets then stabilized unevenly: Japan's Nikkei fell 0.5%, South Korea's KOSPI reversed a 4% drop to edge up 0.1%, and China's CSI300 gained 0.8%.
Safe-haven buying drove the biggest Treasury rally in more than three years, pulling the 10-year yield below 5% to 4.9676% and cutting December Fed hike odds to 85%.
Oil remained the main outlier as Middle East escalation fears grew; Brent is up 3.9% for the week after Houthi attacks in Saudi Arabia raised supply disruption concerns.
Could the hidden trillions in off-balance-sheet AI debt trigger the next global financial crisis if tech revenues fall short?
Will physical energy shortages and strained power grids burst the artificial intelligence investment bubble before financial markets do?
Oil at $113: Geopolitical Shocks, Inflation Surge, and the Global Tech-AI Market Crunch
Overview
A wave of Houthi and Iranian attacks on Middle Eastern oil infrastructure and shipping triggered a sharp surge in global crude prices, which quickly pushed up U.S. inflation and forced central banks to raise interest rates. As energy costs soared, technology stocks suffered heavy losses, leading to a global selloff that hit both U.S. and Asian markets. Airlines and freight companies faced soaring fuel costs, while renewable energy projects in the Middle East stalled due to disrupted supply chains. In response, governments released emergency oil reserves and investors shifted capital from tech to defensive sectors like consumer staples, highlighting the broad economic and financial impact of the oil shock.