US Stocks Fall More Than 1% as Oil Prices Rise

US stocks retreated from artificial-intelligence-fueled record highs on Friday as spiking crude prices ignited global inflation fears. All three major US indexes veered sharply lower, with each shedding more than 1 percent. The declines erased recent gains that had propelled the indexes to successive record closes, powered by investor enthusiasm for artificial intelligence technology.

Spiking crude prices added to pressure across global markets by raising the prospect of renewed inflation. @Reuters reported that the combination of factors triggered a broad sell-off in equities. The pullback came despite no single corporate earnings miss or economic data point immediately prompting the move.

The retreat followed a period in which artificial intelligence optimism had lifted technology shares and broader market benchmarks to fresh peaks. Market participants cited the rapid rise in oil prices as a key driver of the session's losses.

Higher crude costs threaten to feed into consumer prices, potentially complicating the inflation outlook for central banks. The session stood in contrast to recent trading sessions that had been defined by steady advances. Artificial intelligence developments had underpinned much of the prior rally, with investors betting on continued earnings growth in related sectors.

The spike reversed some of the disinflationary trends that had supported risk assets in previous months. No specific closing levels for the indexes were detailed in initial reports.

Trading volume and individual stock movers also remained unavailable in early summaries of the session.