AI fears shake markets, oil surges and Fed hike bets rise | Reuters Morning Bid

A slowdown in AI development could significantly impact the infrastructure buildout, including demand for chips and data centers, and potentially affect the valuations of major AI companies.

Oil prices surged above $108 a barrel following a Houthi attack on a Saudi pipeline and the collapse of regional talks over the Strait of Hormuz. Markets are pricing in a 90% chance the Federal Reserve will raise interest rates on Wednesday.