Drops for stocks in the artificial-intelligence industry are dragging markets down worldwide on Thursday, while oil prices hit their highest levels since May on worries about the war with Iran.

The S&P 500 sank 1.3% following even sharper losses in Asia, whose markets are full of AI and other technology stocks. The Nasdaq composite was down 2.4%, as of 12:56 p.m. ET, but stocks outside of tech did better, and the Dow Jones Industrial Average was down a more modest 40 points, or 0.1%.

AI-related stocks have been shaky on worries that their boom may be under threat because of how expensive it’s become to borrow money to build data centers and buy more AI chips. Concerns also remain that stock prices simply shot too high in their yearslong frenzy, even though companies in the industry continue to report growth.

Lam Research, whose equipment and services help make semiconductors, reported gains in profit and revenue for the summer that were slightly stronger than analysts expected, for example. Usually, that helps boost a stock’s price, but Lam Research’s tumbled 11.1%.

It gave a range for its forecast for profit this quarter whose midpoint was slightly below analysts’ expectations. Its stock also came into the day with a 52.4% surge for the year so far, nearly quadruple the already healthy gain for the overall S&P 500, leaving plenty of room for potential disappointment.

Other big tech stocks were unsettled following their own quarterly reports that included at least some encouraging nuggets.

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