Nasdaq falls 1.25% as oil, rates, AI financing doubts weigh

Wall Street's Nasdaq dropped 1.25% amid persistent pressure from elevated oil prices, high borrowing costs, and mounting questions about the sustainability of AI-related capital expenditures. The decline reflects a risk-off tone driven by macro headwinds, while chipmakers remained relatively resilient, suggesting sector-specific divergence. The market is grappling with the combined impact of energy costs and monetary tightening on equity valuations.