Wall Street declines as oil prices reach four-year high

US stock markets closed broadly lower as rising oil prices exerted pressure on investors. The S&P 500 fell 0.5 per cent, marking its second consecutive weekly loss, while the Dow Jones Industrial Average dropped 1.2 per cent and the Nasdaq composite slipped 0.2 per cent.

Brent crude oil rose 3.1 per cent to settle at $US116.72 per barrel, its highest level since June 2022. This surge follows an increase from less than $US97 at the beginning of October. The rising energy costs weighed on nearly three-quarters of the stocks within the S&P 500.

In contrast to the broader market decline, several artificial intelligence-related companies saw gains, including Micron Technology, Intel, Microsoft, and Advanced Micro Devices. However, investors remain cautious regarding the high costs of AI infrastructure and the impact of high interest rates on the debt used to fund these technologies.