Market Summary
Semiconductor Selloff Deepens as Bond Yields and Geopolitical Risks Weigh: A global selloff in semiconductor stocks intensified as investors retreated amid elevated bond yields and geopolitical uncertainty. Samsung Electronics and SK Hynix slumped more than 7% in Seoul, sending the KOSPI down 6.09% overnight. This followed a 0.69% fall in the S&P 500 yesterday, while Nasdaq 100 futures are down 0.47% and S&P 500 futures are 0.20% lower this morning. The broader risk-off move comes as elevated bond yields continue to pressure equity valuations.
Oil Extends Rally as US-Iran Deadlock Persists: Brent crude has risen 0.70% this morning to $91.67, climbing for a fourth consecutive day after gaining 4.5% over the previous three sessions. Prices remain supported by the lack of progress toward resolving the US-Iran war and continued uncertainty surrounding the Strait of Hormuz. Higher oil prices are adding to concerns about renewed inflationary pressures and the outlook for global monetary policy.
UK Inflation Accelerates, Raising BoE Rate Concerns: UK CPI rose 2.9% year-on-year, increasing pressure on the Bank of England as inflation remains above target. Money markets now price in a 17% probability of a Bank of England rate hike by September, reflecting growing concerns that persistent inflation could delay further monetary easing.
Gold Falls as Bond Yields and Hormuz Uncertainty Weigh: XAUUSD fell 1.90% yesterday to $4,332 and is hovering around $4,347 this morning. The precious metal remains under pressure from the recent bond selloff and elevated yields, while uncertainty surrounding the Strait of Hormuz continues to cloud the outlook.
Economic Calendar
- Eurozone CPI
- US MBA Mortgage Applications
- Russia CPI
Key Market Moves Today
- S&P 500 Futures: -0.20% (7,698.0)
- US 10-Year Yield: -1.69 bps (4.69%)
- Brent Crude: +0.70% ($91.67)
- Bitcoin: -0.42% ($64,282)
- Spot Gold: +0.29% ($4,347)
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