Market Summary
Tech Selloff Deepens as AI Spending Concerns Mount: A global selloff in technology stocks gathered pace overnight as investors questioned whether the billions being spent on artificial intelligence will generate sufficient returns. Nasdaq 100 futures are down 0.37% this morning after South Korea's Kospi tumbled 5.92% overnight, led by weakness across the semiconductor sector. The Magnificent Seven also recorded their worst trading session since Liberation Day, highlighting growing investor caution toward the AI trade.
Oil Near $100 Rekindles Inflation Fears: Brent crude surged 5.70% yesterday following renewed Houthi attacks on oil tankers in the Red Sea and continues to trade around the $100 per barrel mark this morning. Escalating tensions in the Middle East, coupled with President Donald Trump's threat to expand US strikes on Iran, have intensified concerns over global energy supplies. Brent has now rallied approximately 38% this month, reigniting inflation fears and prompting markets to reassess the outlook for interest rates. US 10-year Treasury yields have climbed to 4.71%.
US Tariff Wall Expands: In trade developments, the US announced it will impose import duties of between 10% and 12.5% on goods from most major trading partners, marking its most significant expansion of tariff measures since the Supreme Court limited parts of the administration's earlier trade policy. The move adds another layer of uncertainty for global trade and economic growth.
Japan Yields Rise Following CPI: USDJPY edged higher to 163.82 yesterday. In addition, Japan's core CPI came in as expected at 1.7% year-on-year this morning. Despite the in-line inflation print, Japanese government bond yields continued to rise, with the 40-year yield increasing 10 basis points to 4.01%.
Economic Calendar
- Japan CPI
- UK Retail Sales
- US New Home Sales
- Japan PMI
- France PMI
- German PMI
Key Market Moves Today
- S&P 500 Futures: -0.12% (7,436.0)
- U.S. 10-Year Yield: +1.24bps (4.71%)
- Brent Crude: -0.04% ($100.65)
- Bitcoin: +0.40% ($65,361)
- Spot Gold: -0.51% ($4,028.8)
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