Rising oil prices are dragging down stocks on both sides of the Pacific, and that is bad news for investors betting on an AI-led rally.

• Oil broke above $100 a barrel as the US-Iran conflict keeps squeezing global supply, pushing all four big US indices lower for a fourth straight day.
• Inflation fear is back: government bond yields jumped to 4.9% and traders now put the odds of a Fed rate hike next week at 65%.
• AI stocks took the hit this time — Micron, Nvidia and TSMC's US-listed shares all fell, while Apple rose on its new folding iPhone.
• Taiwan's market fell too, dropping as much as 610 points intraday before recovering, with trading volume thin and buyers staying on the sidelines.
• TSMC posted record August sales topping NT$500 billion, but the share price has not followed.

Outlook: Tonight's US inflation report will decide the direction, with financial stocks seen as the main support if selling continues.