Wall Street stocks fell decisively on Friday, joining most global markets in retreating on continued weakness in artificial intelligence shares and rebounding oil prices.

Tech shares have been under pressure in recent days on questions about their lofty valuations following Nasdaq's surge in the second quarter.

With semiconductor companies the worst hit in the sell-off, Nvidia briefly lost its crown to Apple as the world's most valuable publicly traded company.

In recent weeks, some doubts have cracked the AI bonanza narrative, with analysts wondering if huge investments can be recovered through the adoption of the new AI products being released to the public.

Oil prices jumped more than four percent on renewed fighting between the United States and Iran, intensifying a clash over control of the Strait of Hormuz, a key waterway in petroleum transport.

International benchmark Brent North Sea crude closed at US$88.10 a barrel.

The tech-heavy Nasdaq fell 1.4 percent, to 25,520, the S&P 500 fell 1 percent, to 7,475, while the Dow fell 0.8 percent, to 52,146. (AFP)



Edited by Robert Kemp