Global Markets:
● Asian Stock Markets : Nikkei down 0.85%, Shanghai Composite down 1.20% Hang Seng up 0.49% ASX down 0.13%
● Commodities : Gold at $4,024.85 (-0.89%) Silver at $53.833 (-2.14%), Brent Oil at 113.62 (0.39%), WTI Oil at 100.02 (0.56%)
● Rates : US 10-year yield at 4.956, UK 10-year yield at 5.3396, Germany 10-year yield at 3.3365
News & Data:
● (USD) Unemployment Claims 194K to 200K expected
Markets Update:
U.S. stock futures were little changed on Thursday evening after technology shares tumbled amid concerns that enthusiasm surrounding artificial intelligence (AI) investments may be weakening.
Dow Jones Industrial Average futures rose 52 points, or 0.1%, while S&P 500 futures gained 0.06%. Nasdaq-100 futures slipped 0.1%.
During regular trading, the S&P 500 fell 1.2%, marking its worst session since July, while the Nasdaq Composite dropped 2.6%, its steepest decline since June. The Dow Jones Industrial Average edged slightly higher.
AI spending concerns pressured technology stocks, with the sector falling 3%. Nvidia declined 4.4%, Alphabet lost 3.2%, and Advanced Micro Devices dropped 8.1%.
Nvidia CEO Jensen Huang told CNBC that capital availability was becoming a challenge for the AI infrastructure industry, with demand exceeding available funding. Meanwhile, Yardeni Research President Ed Yardeni described the AI trade as a bubble but argued that moderating valuations could benefit markets without necessarily threatening the broader economy.
Treasury yields declined as investors sought safer assets. The 10-year Treasury yield fell 18.5 basis points to 4.961%, while the 30-year and two-year yields also moved lower.
Oil prices surged after reports that the U.S. and Israel were preparing potential renewed attacks on Iran. Brent crude climbed 4% to settle at $113.17 per barrel, its highest closing level since May.
Investors will next focus on the University of Michigan’s final consumer sentiment reading.
Upcoming Events:
● 1:45 PM GMT – USD Flash Manufacturing PMI
