Technology stocks led a global selloff as disappointing earnings from Amazon.com Inc. and Intel Corp. weakened confidence in the AI trade, prompting a shift to safer assets. The Nasdaq 100 futures fell 2.3%, with Amazon down 7.3% and Intel plunging 23% after weak guidance. Bitcoin dropped 2% to $77,200 following Binance's suspension of deposits and withdrawals due to a suspected hack.
Brent crude rose 2.6% to near $118 as geopolitical risks mounted over potential US strikes on Iran. Gold fell below $4,000 an ounce, while silver slipped 1.7%. Investors flocked to safe-haven assets, with the Swiss franc and Japanese yen gaining against the dollar.
The yen stabilized after the Bank of Japan kept rates unchanged. Alphabet Inc. posted its largest single-day drop, and Samsung Electronics and SK Hynix declined sharply after missing earnings estimates. The Kospi Index fell 5.5%, marking its biggest drop in two weeks.
More than 400 S&P 500 members rose as investors rotated into defensive stocks. Despite tech weakness, five of 11 MSCI Asia Pacific subgroups advanced. Experts warn that high funding costs may force hyperscalers to slow AI investments, questioning the sustainability of lofty valuations.
Treasury yields dropped 2-5 basis points as demand for US debt increased.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing