Market Summary
AI Concerns Weigh on Global Equities: As the US earnings season prepares to begin, enthusiasm for AI stocks faded and equity indices retreated from historic highs. Concerns over heavy investment and whether returns will offset higher borrowing costs prompted investors to pull back from the AI trade. Nasdaq 100 futures fell 0.7%, while the MSCI Asia Pacific Index dropped 1.6%, putting it on course for its lowest close since August.
Treasuries Rally as Risk Appetite Weakens: Treasuries advanced on safe-haven demand as equity markets declined, pushing the US 10-year yield around four basis points lower. The dollar also weakened as investors reduced their exposure to risk assets ahead of tomorrow’s US inflation report.
Oil Falls Despite Middle East Tensions: Brent crude declined to $105.50 a barrel as markets continued to look past Houthi ballistic missile attacks on infrastructure in Saudi Arabia. President Trump said the US was considering whether to join the conflict, while the administration’s agreement to secure Russian diesel eased immediate concerns over energy supplies. The move proved controversial among European allies, particularly after Trump claimed that Ukraine and Russia had agreed to an energy ceasefire despite vocal opposition from President Zelenskyy.
Economic Calendar
- Comments from Fed officials Christopher Waller and Austan Goolsbee
- US CPI on Wednesday
Key Market Moves Today
- S&P 500 Futures: -0.07% (7,852)
- Crude Oil: -1.43% ($92.37)
- Spot Gold: +0.40% ($4,189)
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