The Nasdaq Composite declined on Thursday as fresh details about OpenAI rattled investors and weighed on the artificial intelligence trade.

The tech-heavy Nasdaq fell 1.25%, while the S&P 500 slipped 0.47%. The Dow Jones Industrial Average gained 52 points.

Key technology stocks came under pressure after OpenAI's annualized revenue was disclosed at a level below what had previously been implied.

Shares of Oracle dropped more than 5%, while chipmakers NVIDIA and Advanced Micro Devices fell 2% and 3%, respectively.

Adding to the bearish mood, oil prices also surged after U.S. President Donald Trump said he was unwilling to reach a deal with Iran to end the war, while reports said the United States was preparing a "massive bombing" campaign in the Middle East.

However, he later said the U.S. would not strike Iran before the midterm elections early next month, and oil prices pulled back from their highs. Brent crude rose 4.07% to $104.28 a barrel. Meanwhile, West Texas Intermediate futures climbed 3.64% to settle at $91.49 a barrel.

Traders also kept an eye on Treasury yields after the 10-year and 30-year yields climbed to 24-year highs earlier this week. The benchmark 10-year yield was last down more than 3 basis points at 5.244%, while the 30-year yield fell 4 basis points to 5.621%. The moves came after a solid 30-year Treasury auction.

Recent yield and oil price swings have intensified stock market volatility, as concerns grow that higher energy prices will keep inflation elevated and force the Federal Reserve to raise interest rates further.

Sectors highly sensitive to borrowing costs, such as banks and technology, came under renewed pressure. Shares of Intel and Marvell Technology both fell more than 2%, while Bank of America and Citigroup dropped about 1%.

Sharp swings in Treasury yields and oil prices have roiled stocks recently. The market worries that high oil prices will drive up inflation and force the Fed to hike rates further.

"Every time oil rallies, it translates into higher bond yields and puts pressure on equities, even though stock markets are still showing some resilience," said Alexandre Baradez, chief market analyst at IG in Paris. "Tech and energy are the two main drivers of the U.S. market, so any sign of a slowdown is bound to have an impact."

The market is entering a new earnings season. Previously, stocks largely withstood pressure even as bond yields surged to multi-decade highs. Next, corporate earnings need to prove that this resilience is justified, especially as leading companies in AI infrastructure buildout are issuing billions of dollars in debt to finance their expansion plans.

Still, many investors remain optimistic about the stock market, believing the upcoming earnings season could provide momentum for a new leg higher in the broader market.

FactSet data forecast that S&P 500 companies will post combined earnings growth of about 30% in the third quarter, which would mark the third straight quarter of earnings growth above 25%.

"If corporate earnings remain strong and meet or exceed market expectations, that can support this stock market rally even with rates at high levels. High rates won't kill the market," said Courtney Garcia, senior wealth advisor at Payne Capital Management.

European markets saw renewed selling of French and other heavily indebted countries' bonds in early trading, and major European stock indices closed broadly lower. The pan-European Stoxx 600 fell 0.72%, the Euro Stoxx fell 0.82%, and the eurozone blue-chip index dropped 0.79%. France's CAC 40 declined 0.51%, Spain's IBEX fell 0.87%, the UK's FTSE 100 slipped 0.16%, and Germany's DAX dropped 1.12%.

Turmoil in the French bond market threatened to drag down the banking sector, which has been one of Europe's best-performing areas over the past year or so. Meanwhile, three European Central Bank policymakers once again issued inflation warnings.

Asian markets also closed under pressure: Japan's Nikkei 225 fell 1.42%, South Korea's Kospi tumbled 2.62%, Australia's S&P 200 dropped 0.77%, and China's CSI 300 declined 1.09%.

The market has fully priced in a Fed rate hike in December. Another layer of uncertainty stemming from the Middle East conflict also continues to simmer. The situation has yet to show signs of ending and continues to support oil prices at elevated levels.

High energy costs further reinforced expectations that central banks will keep raising rates to curb inflation. Markets have now fully priced in a 25 basis point Fed rate hike in December.

Fed Governor Waller said further rate hikes may still be needed to slow inflation, though officials have some flexibility on the timing of increases.

"If economic data continue to come in as expected, I anticipate that further rate hikes will be needed to bring inflation back to the 2% target in a more timely manner," Waller said Thursday in Istanbul. "Rate hikes do not need to happen at consecutive meetings, but they should be implemented within an acceptable timeframe."

Expectations of a pause in rate hikes helped keep the U.S. 2-year Treasury yield around 4.80%, while the 10-year yield edged up to 5.33% during European trading hours after touching a 24-year high of 5.36% overnight.