US stocks fall as Red Sea crisis, oil prices, and tech sell-off weigh on markets

New York markets experienced a broad decline on October 23, driven by a confluence of factors including a surge in oil prices and investor concerns over technology stocks. Brent crude futures surpassed $100 a barrel for the first time since May 22, fueled by reports of a Houthi rebel attack on two Saudi oil tankers in the Red Sea. The tech-heavy Nasdaq composite index saw a significant drop of 2.15%. This downturn was exacerbated by a nearly 15% plunge in Tesla's stock. The electric vehicle maker's shares fell sharply after it reported its first negative cash flow in two years and withdrew previous projections for its robo-taxi service, Optimus humanoid robot, and electric truck launch. SpaceX, the space exploration company founded by Elon Musk, also faced a significant share price correction. Its stock fell by almost 50% from its peak, trading at $118 per share. This decline was attributed to the postponement of its Starship rocket test launch and the impending expiration of a lock-up period, which is expected to release a substantial number of shares into the market. The success of SpaceX is largely dependent on the Starship rocket, with another test launch scheduled from Texas.

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The September contract for Brent crude futures rose 7.04% to $100.69 a barrel, the highest since May 22.