By STAN CHOE, AP Business Writer

NEW YORK (AP) — Sharp drops for stocks in the artificial-intelligence industry are dragging down markets worldwide on Thursday, while oil prices hit their highest levels since May because of worries about the war with Iran.

The S&P 500 sank 0.8% following even sharper losses in Asia, whose markets are full of AI and other technology stocks. The Dow Jones Industrial Average was down 142 points, or 0.3%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.

AI 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 high that prices simply shot too high…