Stocks drop on AI, rate hike worries as Lebanon deal hits oil

Stock markets experienced a downturn Thursday, driven by a disappointing earnings forecast from chip maker Broadcom, which raised concerns about the AI sector's future. This was further compounded by stronger-than-expected US economic data, fueling speculation that the Federal Reserve might maintain higher interest rates. Additionally, a significant agreement in Lebanon impacted oil prices, adding another layer of uncertainty to the market. This confluence of factors underscores the delicate balance investors face amid global economic shifts and geopolitical developments.