May 16, Kathmandu - Across worldwide stock markets on Friday, investors are grappling with economic uncertainties fueled by rising oil prices. Major indices, including the US markets, experienced sharp declines amid concerns over the ongoing Middle East conflict and its impact on global supplies.

International media reports indicate that stocks related to artificial intelligence technology saw particularly steep drops, contributing to the overall market turbulence.

The S&P 500 index in the United States fell approximately 1.2% from its record high the previous day. Similarly, the Dow Jones Industrial Average declined by 537 points, while the Nasdaq Composite dropped nearly 1.5%.

The recent surge in artificial intelligence stocks, driven by heightened enthusiasm over the technology sector in recent months, has suddenly reversed course, leading to heightened volatility. Notably, NVIDIA, a leading AI company, saw its shares fall by 4.4%, although it had already gained over 26% in value earlier this year. Microchip Technology's shares also declined by 6.6%, despite being up around 154% year-to-date.

Market analysts suggest that the sharp correction is a natural response after the markets reached an excessive peak. While the strong US economy and robust corporate earnings pushed markets to record highs, experts warn that the road ahead may be challenging.

Meanwhile, escalating tensions in the Middle East have pushed oil prices upward, with the prolonged conflict involving Iran and the closure of the crucial Strait of Hormuz disrupting global oil supply routes. As tanker movements slow, crude oil prices have surged, adding inflationary pressure worldwide.

The rising oil prices have increased economic uncertainty globally, with analysts noting that the impact is already visible in stock market declines. The situation underscores the fragile nature of the current economic landscape amid geopolitical tensions.