Public Markets 3 Days

Last updated: July 17, 2026, 5:30 AM ET

AI Selloff Sparks Sector Rotation and Emerging Market Woes

US equity futures fell sharply as a pronounced selloff in semiconductor stocks deepened, prompting investors to seek alternative sectors. Losses for the Nasdaq were set to intensify, with stocks across the AI complex experiencing significant premarket declines over the AI buildout. The global tech stock rout intensified as the AI trade reversed, with the index of US semiconductor stocks on track for its worst week since last year’s significant decline. Emerging-market equities slumped, with a key gauge heading for a technical correction as mounting concerns over stretched AI valuations triggered a broad selloff in chip stocks across Asia. Taiwan stocks amid widespread losses in Asia's chip sector, as Taiwan Semiconductor Manufacturing Co.'s results stoked worries over heavy spending and a weaker outlook. China chip stock pullbacks to record highs, with a measure of investor sentiment on China technology hardware flashing its most bearish reading ever as the red-hot rally in chip stocks rapidly cooled. Coronation Asset Management Ltd. trimmed its exposure to chipmakers and increased its allocation to India, as expectations for artificial intelligence stocks rose.

Corporate Insiders Exit Stock Market as Gold Prices Tumble

US corporate insiders are selling shares at the second-fastest pace in more than 20 years, a development that some investors view as a classic red flag, suggesting those with the most intimate knowledge of their companies are wary about market valuations. Meanwhile, gold prices a troy ounce and were on track for a weekly decline of more than 3%. Gold was on track for its biggest weekly loss since early June as renewed hostilities in the Middle East raised the odds that the US Federal Reserve may need to raise interest rates to contain inflation. Industrial metals also retreated as traders weighed the likelihood of higher interest rates and their negative impact on demand.

European Equities Rally Amid Geopolitical Jitters; Amundi Eyes Energy in Transition Funds

Strategists are increasingly optimistic about European stocks, with UBS and Deutsche Bank for the Stoxx 600 index. Accelerating earnings growth and confidence that the rally can withstand the latest geopolitical jitters are contributing factors. Amundi SA to allow asset managers to include oil and gas exposures in a new fund category intended to support the transition to a lower-carbon economy. Amundi also expects to book a net capital gain of around €300 million ($343 from the initial public offering of its asset management joint venture in India as previously planned.

Indian IPO Market Faces Valuation Headwinds; Philippine Exchange Seeks Retail Boost

Indian fast-delivery company Zepto Ltd. is seeking a valuation in its initial public offering sharply below its previous peak of $7 billion, as concerns over cash burn temper optimism around the industry. India’s Manipal Health Enterprises Ltd., operator of the Manipal Hospitals chain, is also seeking a lower valuation of about 800 billion rupees ($8.3 in its planned initial public offering as disclosed by the company. Separately, the sole stock exchange in the Philippines is preparing a slew of measures, including new exchange-traded funds, to attract retail investors away from online gambling and cryptocurrency trading. The National Stock Exchange of India Ltd. has received a ‘sell’ recommendation just as it gears up to launch the country’s biggest IPO according to a market report.

Treasury Shorts Favored as US Growth Outpaces Europe; Dollar Stabilizes

UBS Asset Management’s Kevin Zhao is planning to short Treasuries, betting that the robust US economy will erode the haven appeal of owning government debt as he explained to clients. The dollar edged lower as oil prices stabilized, even as hostilities between the US and Iran continued. Saudi Arabia’s oil loadings from inside the Persian Gulf have slumped in the wake of an upsurge of attacks on supertankers in the Strait of Hormuz, satellite images reviewed by Bloomberg show, demonstrating the impact on global energy flows as indicated by surveillance.

Luxury and Defense Sectors Show Resilience; UK M&A Activity Continues

UK luxury brand Burberry as it moves forward with its turnaround plan, with growth across divisions for the first time in three years. The brand has been particularly popular with Gen Z consumers. Swedish defense company Saab backed its medium-term growth guidance after signing several large orders recently, indicating strong demand in the defense sector as it announced. Foreign takeovers of UK companies continue, with no end in sight for this trend.

Philipine Bourse Reforms; Hong Kong Stock Discount Widens

The sole stock exchange in the Philippines is preparing a slew of measures, including new exchange-traded funds, to attract retail investors away from online gambling and cryptocurrency trading as part of a reform initiative. Hong Kong stocks’ valuation discount to their mainland-listed counterparts is widening, driven largely by liquidity strains and Beijing’s crackdowns on capital outflows as revealed by market analysis.

Emerging Markets Eye Comeback; Thai Stocks Gain Favor

Thai stocks are finding favor again as investors bet that an Anutin Charnvirakul-led government will bring an end to years of political turbulence, spurring foreign capital inflows. India is eyeing a market comeback with a $1 billion IPO for SBI Funds Management as reported by financial news. The Reserve Bank of India’s latest measures to attract foreign currency inflows are set to lift optimism when some of the country’s largest private sector banks report as anticipated by analysts.

Private Capital and IPO Activity; Deal Making in Focus

Howden Group, the London-based insurance broker chasing an initial public offering by 2030, is in talks to raise several billion pounds in new private capital as it seeks to maintain its growth trajectory as it seeks funding. Wall Street’s biggest investment banks hauled in the most revenue from advising on equity offerings in the second quarter since 2021, fueled by SpaceX’s record-setting IPO and a fundraising blitz for other tech companies as shown by revenue reports. ABB is buying U.K.’s Rotork for $5.6 billion, riding a wave of demand for products used in data centers and expanding its electrification and automation portfolios as part of its strategy. KKR & Co. and Energy Capital Partners have sweetened their bid for DCC Plc to more than £5.7 billion ($7.6 and bought extra time to complete what has become a drawn-out takeover process as negotiations continue.

Middle East Tensions Impact Markets and Bond Spreads

Middle East bond spreads hit a 2022 high as the ceasefire breaks down, with bond investors demanding the most compensation since October 2022 to fund Middle Eastern governments as fighting flares again between the US and Iran. US-sanctioned tankers carrying cooking fuel are U-turning and zig-zagging in the Gulf of Oman and Arabian Sea, part of a flotilla of vessels laden with Iranian energy exports facing an aggressive blockade as observed by surveillance. The war risk for businesses will mean higher prices no matter what happens, pushing up the price of everything from food to electronics as economists predict.

UK Politics and Economic Outlook; Pound Strengthens

Sterling hit its strongest level in a year as speculation that incoming Prime Minister Andy Burnham will name a markets-friendly Chancellor of the Exchequer accelerated a shift away from bearish positions. The UK and EU have committed twice as much money as the US to investments in the computing sector, potentially giving Europe an edge in quantum supremacy. The Bank of England’s ‘quantitative tightening’ program has been criticized for driving up government borrowing costs, leading investors to say the BoE should slow or stop long-dated bond sales.