The Dow Jones Industrial Average rose 0.3%, supported by strength in several blue-chip names. However, the S&P 500 slipped 0.4%, while the technology-heavy Nasdaq Composite fell 1.3% as investors reduced exposure to some of the market's largest growth stocks.

The session followed two consecutive weeks of gains for US equities, with markets having recovered from the volatility that followed the Federal Reserve's latest hawkish policy meeting. However, Monday's trading highlighted the growing tension between optimism over economic resilience and concerns that inflation could remain stubbornly high.

Geopolitical Developments Ease Energy Fears

Markets continued to monitor developments surrounding negotiations between Washington and Tehran.

Concerns initially intensified after Iran announced the closure of the Strait of Hormuz in response to escalating regional tensions involving Israel and Hezbollah. While shipping traffic through the critical waterway continued, volumes remained below normal levels, raising concerns about global energy supplies.

Investor sentiment improved later in the session after mediators reported encouraging progress in negotiations between the United States and Iran. The prospect of de-escalation helped reduce fears of a prolonged disruption to global energy markets.

Oil prices responded by moving lower. Additional pressure came after the US Treasury Department authorized the sale of Iranian oil for a 60-day period, raising expectations of increased supply.

West Texas Intermediate crude fell roughly 2% to around $75 per barrel, while Brent crude declined approximately 3% to trade near $78 per barrel.

Inflation Data Takes Centre Stage

The primary focus for investors now shifts to the release of the Personal Consumption Expenditures (PCE) Price Index later this week.

The PCE index is the Federal Reserve's preferred measure of inflation and is expected to play a significant role in shaping expectations for monetary policy over the coming months.

Markets remain particularly sensitive after April's reading reached its highest level in nearly three years. Recent comments from Federal Reserve officials have reinforced the possibility that interest rates could rise again if inflation fails to moderate.

That uncertainty was reflected in the bond market, where the yield on the benchmark 10-year US Treasury note climbed to 4.51%, up from 4.46% at the end of last week. Rising Treasury yields continue to create headwinds for growth stocks by increasing borrowing costs and reducing the attractiveness of future earnings.

Semiconductor Stocks Continue to Shine

Despite weakness across much of the technology sector, semiconductor companies remained a bright spot.

Micron shares surged approximately 7% to a fresh record high ahead of its quarterly earnings release. Investors continue to view the company as a key beneficiary of accelerating demand for AI-related memory and data-centre infrastructure.

Intel and SanDisk also advanced to new highs as optimism surrounding artificial intelligence investment and semiconductor demand continued to support the sector.

The performance suggests that while investors may be rotating away from some mega-cap technology names, appetite for AI infrastructure and chip-related opportunities remains strong.

Big Tech Weakens While SpaceX Extends Pullback

Large-cap technology companies faced significant selling pressure during the session.

Alphabet fell approximately 5%, making it one of the weakest performers among major technology stocks. Amazon also declined around 5% as investors reassessed valuations amid rising bond yields and policy uncertainty.

Tesla bucked the broader trend, gaining roughly 1% and demonstrating continued resilience despite weakness across the growth sector.

Meanwhile, SpaceX shares continued to retreat following their explosive post-IPO rally. The stock fell another 16% to close near $155, marking its lowest closing level since listing earlier this month. The decline suggests investors are locking in profits after the stock's rapid ascent following its market debut.

Bitcoin Holds Gains While Gold Slips

Cryptocurrency markets remained relatively resilient despite broader market caution.

Bitcoin traded near $64,400 late in the session after briefly surpassing $65,000, its highest level in roughly a week. The cryptocurrency continues to benefit from improving risk sentiment and renewed interest in alternative assets.

Gold moved in the opposite direction, falling approximately 1% to around $4,210 per ounce. A stronger US dollar and rising Treasury yields reduced demand for the precious metal.

The US Dollar Index rose 0.2% to 101, reflecting ongoing expectations that US interest rates could remain elevated for longer.

Market Outlook

Markets are likely to remain cautious in the near term as investors await the latest PCE inflation data and assess its implications for Federal Reserve policy.

A softer-than-expected inflation reading could reignite risk appetite and support both equities and cryptocurrencies. Conversely, any indication that inflation remains stubbornly elevated may strengthen expectations for additional policy tightening, placing renewed pressure on growth stocks and broader market valuations.

The semiconductor sector remains a key area to watch. Micron's earnings report and forward guidance could influence sentiment across the entire AI and chip ecosystem, potentially driving sector-wide volatility.

Oil prices may remain under pressure if diplomatic progress continues and additional Iranian supply reaches global markets. Lower energy prices would help ease inflation concerns and provide support for risk assets.

Investors should continue to monitor Treasury yields, the US dollar, inflation data, and developments in Middle Eastern negotiations. Together, these factors are likely to determine whether markets extend their recent recovery or enter a new period of consolidation.

The Dow Jones Industrial Average led the way, rising 0.7% and adding more than 350 points. The S&P 500 gained 0.5%, while the Nasdaq Composite advanced 0.3%. Weekly performance was equally constructive, with the Dow and S&P 500 posting gains of around 0.6% and 0.5% respectively, while the Nasdaq added approximately 0.6%.

The standout story of the session was SpaceX, which made a spectacular public market debut. The company began trading under the ticker SPCX at $150 per share, well above its IPO price of $135. By the close, shares had surged to more than $160, delivering first-day gains of nearly 19%.

Beyond the excitement surrounding the stock itself, the offering marked a major test of investor appetite for large-scale growth companies operating at the intersection of technology, artificial intelligence, and space innovation. Raising almost $75 billion, the listing became the largest IPO in market history and reinforced confidence that investors remain willing to back ambitious, future-focused businesses despite lingering macroeconomic uncertainty.

The successful launch also strengthened Elon Musk's influence across financial markets. Positive sentiment spilled over into other Musk-linked ventures, helping Tesla shares gain 1.6% during the session.

Meanwhile, falling oil prices provided additional support for equities. West Texas Intermediate crude fell 3.8% to $84.35 per barrel, while Brent crude declined 3.5% to $87.33. The move followed reports that Washington and Tehran may be making progress toward an agreement that could reduce tensions in the region and potentially ease concerns around shipping through the Strait of Hormuz.

Lower oil prices were particularly welcomed by travel-related stocks. Airlines and cruise operators, which are highly sensitive to fuel costs, benefited from expectations that sustained declines in crude could improve profitability. Investors showed renewed interest in carriers such as Delta, United Airlines, and American Airlines as fuel-cost pressures appeared to ease.

Elsewhere, bond markets reflected a more cautious tone. The yield on the 10-year US Treasury note edged higher to 4.49%, while the US dollar index slipped slightly to 99.78. Bitcoin remained relatively stable near $63,600.

Gold, however, attracted strong buying interest. Futures jumped approximately 3% to around $4,230 per ounce as investors continued to seek protection against geopolitical uncertainty and broader economic risks.

Technology stocks delivered a mixed performance. While Tesla benefited from the SpaceX enthusiasm, Adobe came under heavy selling pressure, falling roughly 7%. Investors reacted negatively after the company warned that efforts to expand adoption of its free AI tools could create short-term pressure on recurring revenue growth. The announcement of the departure of Adobe's chief financial officer added to investor concerns.

Economic data also highlighted a growing disconnect between hard economic indicators and consumer perceptions. Official labour market figures continue to suggest a relatively resilient economy, yet consumer sentiment remains fragile. A University of Michigan survey showed that many Americans expect unemployment to rise over the next year, underscoring persistent concerns about growth prospects, income security, and future spending conditions.

Consumers did receive some relief from lower fuel prices, with the average price of regular gasoline falling to $4.11 per gallon after recently reaching $4.56. Should oil continue to move lower, household spending power could improve, providing some support for broader economic activity.

Market Outlook

Markets begin the new week focused squarely on developments surrounding US-Iran negotiations. Any progress toward reopening the Strait of Hormuz and reducing geopolitical tensions could place further downward pressure on oil prices, helping to ease inflation concerns and improve investor sentiment.

Technology, travel, and aviation stocks may continue to benefit from a combination of lower energy costs and improving risk appetite. Conversely, energy producers could face headwinds if crude prices extend their decline.

Gold is likely to remain supported while geopolitical uncertainty persists, as investors are rarely quick to abandon safe-haven assets during periods of major political transition.

Attention will also remain on the Federal Reserve. A cautious or hawkish policy tone could push Treasury yields higher and weigh on growth stocks. However, if lower energy prices contribute to softer inflation expectations, equity markets may have additional room to extend their recent gains.

For now, investors appear willing to embrace risk, but the sustainability of that optimism will depend on both geopolitical developments and the evolving outlook for inflation and interest rates.

The Nasdaq Composite fell around 1%, while the S&P 500 declined 0.3%. Both indices had started the day in positive territory before selling pressure emerged in the technology sector. The Dow Jones Industrial Average bucked the broader trend, gaining approximately 0.2% as investors rotated into more defensive and traditional sectors.

Semiconductor stocks were at the centre of the market's weakness. Shares of chipmaker Marvell Technology retreated sharply after posting strong gains in the previous session, while other sector heavyweights including Arm Holdings, Qualcomm, and Advanced Micro Devices also moved lower. The pullback suggested investors were locking in profits after a prolonged rally that has been driven largely by enthusiasm surrounding artificial intelligence and data centre investment. Reflecting the broader weakness, the iShares Semiconductor ETF lost nearly 2%.

The so-called "Magnificent Seven" technology giants also faced renewed selling pressure. Tesla and Nvidia reversed early gains to finish lower, while Apple continued to struggle following its annual developer conference, as investors questioned whether the company's latest announcements were sufficient to reignite growth expectations. Alphabet was one of the few mega-cap technology names to end the session in positive territory.

Despite the weakness in technology shares, many analysts continue to view the pullback as a normal consolidation phase rather than the beginning of a broader market reversal. Following months of strong gains, investors appear increasingly willing to reduce exposure ahead of major economic data releases and rising geopolitical risks.

Energy markets experienced significant volatility throughout the session. Crude oil prices initially fell after comments from US President Donald Trump suggested that a diplomatic agreement between the United States and Iran could potentially be reached within days. However, losses narrowed after Trump claimed that Iran had shot down a US Apache helicopter near the Strait of Hormuz, prompting concerns about possible military escalation.

West Texas Intermediate crude settled near $88.20 per barrel, down approximately 3.4%, while Brent crude ended around $91.45 per barrel, roughly 3% lower on the day. Despite the decline, traders remain highly sensitive to developments around the Strait of Hormuz, a critical artery for global oil shipments.

Cryptocurrency markets also reflected a more cautious investor mood. Bitcoin retreated toward $61,800 after briefly climbing above $63,800 earlier in the session. The digital asset remains under pressure following a recent drop below the $60,000 level, highlighting weakening risk appetite across speculative asset classes.

Meanwhile, US Treasury yields declined as investors sought safety ahead of key economic data. The yield on the benchmark 10-year Treasury note eased to approximately 4.53%, while the US dollar index slipped marginally below the 100-point mark. Gold futures also weakened, falling around 2% to near $4,275 per ounce as markets continued to adjust expectations for a prolonged period of elevated interest rates.

Corporate earnings contributed to divergent stock performance. JM Smucker surged nearly 10% following its latest earnings release, while SailPoint dropped 11% and Vail Resorts declined approximately 4.5%, underscoring the increasingly selective nature of investor positioning.

Market Outlook

Investor attention is now firmly focused on the release of the latest US Consumer Price Index (CPI) data, a report that could significantly influence expectations for Federal Reserve policy during the second half of the year.

Markets are forecasting annual inflation of 4.2%, which would represent the highest reading in nearly three years. A stronger-than-expected inflation print could reinforce expectations that interest rates will remain elevated for longer and potentially revive concerns about additional monetary tightening.

Technology and semiconductor stocks are likely to remain vulnerable to further profit-taking if inflation surprises to the upside. However, a softer inflation reading could provide support for growth-oriented sectors and encourage investors to return to artificial intelligence-related names that have driven much of the market's advance this year.

Oil prices will also remain a key catalyst. Any escalation of tensions between Washington and Tehran, particularly around the Strait of Hormuz, could lift energy prices and weigh on broader market sentiment. Conversely, signs of diplomatic progress could support a recovery in risk assets and help stabilise equity markets after recent volatility.

For now, markets appear poised for another session of heightened volatility as investors balance inflation concerns, geopolitical developments, and shifting expectations for interest rates.

The technology-heavy Nasdaq Composite rose 0.9%, while the S&P 500 added 0.3%. The Dow Jones Industrial Average lagged behind, finishing slightly lower by 0.1% after surrendering earlier gains. The session marked a welcome recovery following Friday's sharp sell-off, which had been triggered by stronger-than-expected US employment data and renewed concerns about interest rates remaining elevated.

The semiconductor sector was the clear standout. Chipmakers tied to the artificial intelligence boom staged a strong comeback after suffering heavy losses at the end of last week. Intel surged nearly 11%, while Micron Technology gained around 10%, recovering a significant portion of Friday's declines.

Intel received an additional boost from reports suggesting that Google and Nvidia may be considering the company as a backup manufacturing partner for advanced chips. The reports helped restore investor confidence and reignited interest in the broader semiconductor space.

Technology stocks led sector gains within the S&P 500, with the information technology sector rising approximately 1.5%. Investor enthusiasm was also reflected in the performance of the iShares Semiconductor ETF, which jumped roughly 6%, highlighting renewed appetite for AI and chip-related investments.

Performance among the market's largest technology companies was mixed. Tesla climbed 4.6%, while Nvidia advanced 1.7%, both recovering from losses exceeding 6% during Friday's session. Apple, however, moved in the opposite direction, falling around 2% despite the start of its annual developer conference.

Marvell Technology also enjoyed a strong rebound, gaining roughly 10% after plunging 17% in the previous session. Investor sentiment was boosted by the announcement that the company will be added to the S&P 500 index before trading begins on June 22, a move that could generate additional demand from passive investment funds that track the benchmark.

Despite Monday's recovery, investors remain mindful of the challenges that triggered last week's sell-off. Strong US employment data reinforced expectations that the Federal Reserve may keep interest rates higher for longer. Treasury yields remain elevated, with the yield on the 10-year US Treasury note settling near 4.56%, maintaining pressure on growth-oriented sectors whose valuations are particularly sensitive to borrowing costs.

However, many analysts argue that the recent weakness in semiconductor stocks should not automatically be viewed as the beginning of a sustained downturn. Strong corporate earnings, improving manufacturing activity, and ongoing investment in artificial intelligence continue to provide support for the sector. From this perspective, the recent pullback may represent a healthy correction within a broader bull market rather than a fundamental shift in trend.

Energy markets also attracted attention during the session. Oil prices initially surged as Israel and Iran exchanged military strikes, raising fears of supply disruptions across the Middle East. Those gains moderated after both sides confirmed a halt to hostilities and calls for an immediate ceasefire gained momentum.

West Texas Intermediate crude settled around $91.40 per barrel, up approximately 1%, while Brent crude rose 1.2% to roughly $94.25 per barrel. Although prices remain elevated, the easing of geopolitical tensions helped calm fears of a more significant energy shock.

Cryptocurrency markets also staged a recovery. Bitcoin rebounded to around $63,500 after briefly falling below $60,000 on Friday for the first time since October 2024. The recovery supported shares of crypto-related companies, with Strategy, Robinhood, MARA, and Coinbase all posting gains ranging from 3% to 12%.

Elsewhere, the US Dollar Index slipped 0.1% to 100.01, while gold futures declined 0.3% as investors rotated back into risk assets.

Market Outlook

Markets are likely to remain cautious in the near term, balancing optimism around the semiconductor sector's rebound against persistent concerns about interest rates and bond yields. Investors will continue to watch whether Monday's recovery can develop into a broader rebound or whether it proves to be a temporary relief rally following Friday's sharp correction.

The semiconductor sector is expected to remain at the centre of market attention, particularly as investors assess the long-term implications of artificial intelligence investment and the improving outlook for companies such as Intel, Micron, and Marvell. Continued strength in this area could provide important support for the Nasdaq and broader technology sector.

At the same time, elevated Treasury yields remain a significant headwind. If economic data continues to point to a resilient US economy, expectations for prolonged higher interest rates could re-emerge and limit upside potential for growth stocks.

Geopolitical developments will also remain in focus. Stable oil prices and continued de-escalation in the Middle East would likely support investor confidence, while any renewed tensions could quickly reignite volatility across equities, commodities, and currencies.

For now, the market appears caught between two powerful forces: enthusiasm for the AI-driven growth story and concerns that higher interest rates may continue to challenge valuations. The balance between those themes is likely to determine market direction in the days ahead.

The technology-heavy Nasdaq Composite plunged around 4%, marking its worst weekly performance in more than a year. The S&P 500 fell approximately 2.6%, snapping a nine-week winning streak, while the Dow Jones Industrial Average lost roughly 1.4%, highlighting the spread of selling pressure across multiple sectors of the market.

The catalyst for the decline was the May US employment report, which showed job creation significantly exceeding expectations. While strong employment is generally viewed as a positive sign for the economy, investors interpreted the data through the lens of monetary policy. The report reinforced the view that inflationary pressures may remain persistent, reducing the likelihood of near-term interest rate cuts and increasing speculation that the Federal Reserve could maintain a hawkish stance for longer than previously anticipated.

As expectations shifted, yields on 10-year US Treasury bonds climbed to around 4.55%, putting additional pressure on high-growth and richly valued companies whose valuations are particularly sensitive to higher borrowing costs and discount rates.

The technology sector led the decline. Artificial intelligence-linked stocks, which have been among the market's strongest performers in recent years, experienced a sharp reversal. Shares of Broadcom, AMD, Intel, and Micron all fell between 11% and 17% during the sell-off. The market's largest technology names were also hit, with Nvidia and Tesla each declining more than 6%.

The weakness extended beyond equities into digital assets. Bitcoin fell below the $60,000 level for the first time since October 2024, triggering a sell-off in cryptocurrency-related stocks. Companies including Coinbase, Robinhood, MARA, and Strategy recorded notable losses as investors reduced exposure to risk-sensitive assets.

Commodity markets reflected a similar shift toward caution. Crude oil prices weakened, with both Brent and West Texas Intermediate falling between 2% and 3%. Gold also declined sharply as investors rotated into US dollars and Treasury bonds. The US Dollar Index strengthened, benefiting from higher yields and expectations of tighter monetary policy.

Corporate earnings concerns added another layer of pressure. Athletic apparel company Lululemon saw its shares fall more than 8% after lowering its revenue and profit forecasts, suggesting that challenges are emerging outside the technology sector and affecting consumer-facing businesses as well.

By the close of trading, the market mood had clearly shifted from optimism to caution. Investors who had previously focused on AI-driven growth themes and hopes for lower interest rates were forced to reassess their positions in light of stronger economic data and rising bond yields.

Market Outlook

Markets are likely to begin the new week in a cautious and defensive mood as investors digest the implications of stronger US economic data and rising Treasury yields. Technology and growth stocks may remain vulnerable to further profit-taking, particularly if bond yields continue to move higher or if Federal Reserve officials reinforce a hawkish policy outlook.

In the short term, attention will remain firmly focused on inflation data, Federal Reserve commentary, and movements in the bond market. Any signs that inflation is proving difficult to contain could further delay expectations for interest rate cuts and extend pressure on risk assets.

At the same time, markets may attempt to stabilise after the sharp sell-off, especially if investors view the correction as an opportunity to re-enter quality names at lower valuations. However, until yields begin to ease or monetary policy expectations become more supportive, volatility is likely to remain elevated and risk appetite subdued across equities, cryptocurrencies, and other growth-oriented assets.

The Dow Jones Industrial Average led the declines, falling more than 600 points, or 1.2%. The Nasdaq Composite lost 0.9%, while the S&P 500 slipped 0.7%, bringing an end to its nine-session winning streak. The retreat reflected growing concerns that higher energy prices and increased geopolitical uncertainty could complicate the inflation outlook and delay any potential easing in monetary policy.

Technology and artificial intelligence stocks, which have been the primary drivers of recent market gains, came under pressure. IBM and Salesforce posted notable losses, while AI heavyweights Microsoft and NVIDIA fell between 3% and 7%. Given their large weightings in major indices, the declines had an outsized impact on broader market performance.

Investor sentiment was further shaken by developments in the Middle East. Reports of Iranian attempts to target US forces in the region were followed by US strikes against Iranian sites. Additional comments from Israeli Prime Minister Benjamin Netanyahu indicating that further military action against Iran remained possible heightened concerns that the conflict could broaden and disrupt global energy markets.

Those fears translated directly into higher oil prices. West Texas Intermediate crude climbed approximately 2.3% to trade near $96 per barrel, while Brent crude rose 1.9% to settle at $97.81 per barrel. The move renewed concerns that energy-driven inflation could re-emerge just as investors had begun to anticipate a more stable inflation environment.

Despite the broader market weakness, some AI-related companies continued to attract investor interest. Marvell Technology extended the momentum from its previous session's 33% surge, gaining a further 5% as enthusiasm surrounding AI infrastructure spending remained strong. However, other semiconductor and cybersecurity names experienced profit-taking ahead of earnings announcements. Broadcom edged lower ahead of its results, while CrowdStrike declined roughly 3% as investors positioned cautiously ahead of its earnings release.

Corporate earnings reactions remained mixed. Palo Alto Networks fell approximately 6% despite reporting results that exceeded analyst expectations, suggesting investors were locking in profits following the stock's strong performance this year. Meanwhile, Ulta Beauty and GitLab also moved lower, while GameStop and Medtronic recorded gains following their latest financial updates.

In currency markets, the US Dollar Index rose to 99.52 as investors sought the relative safety of the US currency amid heightened geopolitical uncertainty. At the same time, the yield on the benchmark 10-year US Treasury note climbed above 4.49%, increasing pressure on growth-oriented sectors that are particularly sensitive to higher financing costs.

Traditional safe-haven assets delivered a mixed performance. Gold slipped approximately 1%, while Bitcoin fell to around $65,600 after briefly approaching $67,800 earlier in the day. The weakness in both assets reflected a broader shift toward cash and US dollar exposure as market volatility increased.

Investors also digested fresh trade policy developments after the Trump administration proposed new tariffs ranging from 10% to 12.5% on imports from 60 countries. While the proposal included numerous exemptions designed to reduce disruption to supply chains, it nonetheless added another layer of uncertainty for global trade and economic growth.

Meanwhile, the OECD warned that a prolonged conflict in the Middle East could weigh on global economic growth over the next two years through higher energy costs and renewed inflationary pressures, reinforcing concerns already evident across financial markets.

Market Outlook

Markets enter today's session focused on two key drivers: geopolitical developments in the Middle East and the outlook for artificial intelligence-related earnings growth.

Oil prices remain the critical variable. If crude continues to trade near or above the $100 per barrel level, investors may increasingly worry about the impact on inflation expectations and interest-rate policy. Such a scenario could place further pressure on technology and growth stocks, which have been the market's strongest performers this year.

Attention will also turn to Broadcom's earnings results, which are expected to provide another important indicator of demand across the AI and semiconductor ecosystem. Strong results could help restore confidence in the sector and support a broader market recovery.

For now, investor sentiment remains cautious. While the long-term AI growth story remains intact, short-term market direction will likely depend on whether geopolitical tensions ease and whether economic data continues to support the case for resilient growth without reigniting inflation concerns.

The Dow Jones Industrial Average rose 0.5% to a fresh record close, while the S&P 500 gained 0.1%, also setting a new historic high. The Nasdaq Composite finished modestly higher, supported by continued strength across the technology sector.

The latest gains extend a rally that has been driven largely by artificial intelligence-related investments, following one of the strongest months for US equities in recent years.

AI Infrastructure Continues to Drive Market Leadership

The artificial intelligence sector remained the primary catalyst for market performance.

Marvell Technology emerged as one of the session's standout performers, surging more than 33% after NVIDIA CEO Jensen Huang publicly praised the company's long-term prospects during Computex in Taiwan. Huang suggested Marvell could eventually become one of the next trillion-dollar technology companies, further fuelling investor optimism around the broader AI supply chain.

Hewlett Packard Enterprise also delivered a stellar performance, climbing more than 19% after reporting quarterly earnings that comfortably exceeded expectations. Strong demand for AI-focused servers, networking equipment, and data centre infrastructure helped the company raise its forward guidance.

The rally extended beyond traditional chipmakers. Companies such as Dell, Cisco, and Intel continued to benefit from growing demand for the hardware required to support increasingly complex artificial intelligence workloads.

However, not every technology giant participated in the rally. Alphabet shares fell approximately 4% after announcing plans to issue $80 billion in stock to fund additional AI infrastructure investments. Investors appeared concerned about potential shareholder dilution despite the company's aggressive growth strategy.

The ongoing surge in AI-related stocks has prompted comparisons with the technology boom of the late 1990s. However, many analysts argue that today's market leaders are supported by significantly stronger earnings, cash flows, and business fundamentals than many companies during the dot-com era.

Economic Strength Supports Risk Appetite

Fresh economic data also provided support for equities.

US job vacancies rose to their highest level in more than two years, highlighting the continued strength of the labour market despite ongoing geopolitical tensions and concerns about economic growth.

The data reinforced expectations that the US economy remains resilient, helping to sustain investor appetite for risk assets.

Commodities and Crypto Mixed

Energy markets remained focused on developments surrounding US-Iran negotiations.

West Texas Intermediate crude rose to approximately $93.60 per barrel, while Brent crude settled near $96 per barrel as traders monitored geopolitical developments and their potential impact on global oil supplies.

Gold posted modest gains as investors maintained some demand for safe-haven assets amid ongoing uncertainty.

Cryptocurrency markets moved lower, with Bitcoin falling below the $70,000 level as traders locked in profits following the strong rally seen in recent weeks.

Corporate Movers Capture Attention

Outside the technology sector, several companies recorded significant gains.

Victoria's Secret surged more than 47% after reporting stronger-than-expected results and raising its full-year revenue and profit forecasts.

STMicroelectronics gained over 15% after increasing its revenue targets for data centre-related business segments, reflecting the growing influence of artificial intelligence across the semiconductor industry.

Meanwhile, Oracle founder Larry Ellison's net worth continued to climb as Oracle shares reached new record highs, underscoring the growing importance of enterprise software providers in the AI infrastructure buildout.

Market Outlook

Investors now turn their attention to upcoming US private-sector employment figures and service-sector activity data, both of which could provide important clues regarding the Federal Reserve's next policy moves.

The artificial intelligence sector is expected to remain the dominant market theme in the near term, particularly as demand for servers, networking equipment, cloud infrastructure, and advanced semiconductor technologies continues to accelerate.

However, stronger-than-expected economic data could reinforce expectations that interest rates will remain elevated for longer, potentially creating volatility across growth-oriented sectors.

Geopolitical developments involving the United States and Iran will also remain closely watched, given their influence on oil prices, inflation expectations, and overall market sentiment.

For now, the broader outlook remains constructive. Strong earnings growth, continued investment in AI infrastructure, and resilient economic conditions continue to support US equities, although increasingly stretched valuations may leave markets vulnerable to periods of profit-taking after their remarkable run to record highs.

The technology-heavy Nasdaq Composite gained 0.6% during Monday's session, while the S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.1%. All three indices reached fresh intraday and closing records, extending the positive momentum that dominated trading throughout May.

NVIDIA once again led the charge, surging more than 6% after CEO Jensen Huang unveiled the company's new RTX Spark chip at Computex in Taiwan. The announcement was accompanied by new partnerships with Microsoft, Dell, and HP aimed at launching a new generation of AI-powered personal computers, further reinforcing investor confidence in the expanding AI ecosystem.

The ripple effect was felt across the sector. Dell Technologies jumped approximately 11%, HP gained 8.5%, and Microsoft advanced 2.3%. Arm Holdings also rallied 16% after confirming its participation in the development of the new chip architecture.

Not all semiconductor companies shared in the enthusiasm. Investors reassessed the competitive landscape, sending Qualcomm shares down roughly 9%, while Intel fell 4.5% and AMD slipped around 1%.

Away from technology, investors continued to monitor developments in the Middle East. Oil prices surged after reports suggested a tougher Iranian stance regarding the Strait of Hormuz and ongoing disagreements with the United States. West Texas Intermediate crude rose 5.7% to $92.30 per barrel, while Brent crude climbed 4.2% to $94.98.

However, crude prices trimmed some of those gains after US President Donald Trump indicated progress in diplomatic discussions with Iran and referenced efforts to reduce tensions between Israel and Hezbollah.

Bond markets reflected continued caution around inflation and interest rates. The yield on the benchmark 10-year US Treasury note edged higher to 4.47%, while the US Dollar Index gained 0.3% to 99.18 as expectations for relatively tight monetary policy remained intact.

Safe-haven assets moved lower. Gold declined 1.7% to around $4,515 per ounce, while Bitcoin retreated to approximately $71,500 after briefly trading above $74,000 overnight.

Several notable corporate developments also captured investor attention. Taylor Morrison surged more than 22% after Berkshire Hathaway announced a $6.8 billion all-cash acquisition of the company. The transaction represents Berkshire's first major acquisition since leadership transitioned from Warren Buffett to Greg Apple, making it a closely watched test of the firm's post-Buffett era.

Meanwhile, MGM Resorts rose around 16% after receiving a cash takeover offer from People Inc. valued at $48.30 per share.

The artificial intelligence sector received another boost after Anthropic, developer of the Claude chatbot, reportedly filed confidential paperwork for an initial public offering with the US Securities and Exchange Commission. The move could pave the way for one of the largest technology IPOs in recent years and further fuel investor enthusiasm for AI-related assets.

Market Outlook

Investors remain heavily focused on the artificial intelligence sector, which continues to provide the strongest source of market momentum. Further announcements from major chipmakers, software providers, and cloud computing firms are likely to remain key catalysts for equity markets in the near term.

At the same time, rising oil prices and ongoing geopolitical uncertainty in the Middle East present a growing risk to inflation expectations. Should energy prices remain elevated, markets may be forced to reconsider expectations for future interest-rate cuts, potentially creating headwinds for high-growth technology stocks.

Traders will also be watching upcoming economic data and Federal Reserve commentary for fresh clues on the outlook for inflation, growth, and monetary policy. While risk appetite remains strong, the combination of record equity valuations, higher bond yields, and geopolitical uncertainty could lead to increased volatility in the weeks ahead.

The technology-heavy Nasdaq jumped 1.2%, while the S&P 500 gained 0.6%, surpassing their previous record highs set on May 14. Meanwhile, the Dow Jones Industrial Average slipped 0.2%, weighed down by weakness in several large-cap industrial and consumer stocks.

Semiconductor shares led the rally after Micron Technology surged 19% in one of its strongest trading sessions in years. The sharp gains were fueled by growing optimism surrounding AI-driven demand for memory chips and broader expectations of accelerating investment in digital infrastructure.

Investor appetite for AI-related technology names remained strong throughout the session. Shares of Dell Technologies rose more than 3%, extending last week’s 17% rally as markets continued betting on rising demand for AI servers, cloud systems, and enterprise computing infrastructure.

However, gains across mega-cap technology stocks were uneven. Shares of NVIDIA closed marginally lower by 0.2% despite early advances, while several members of the so-called “Magnificent Seven” traded mixed amid limited profit-taking near all-time highs.

Outside the technology sector, AutoZone became one of the session’s biggest losers after its shares plunged nearly 9% following quarterly results that missed analyst expectations on both revenue and earnings.

Energy markets remained volatile as traders reacted to conflicting developments surrounding US-Iran relations and tensions in the Strait of Hormuz.

US West Texas Intermediate crude futures dropped around 3% to trade below $94 per barrel after US President Donald Trump stated that peace talks with Iran were “going very well.” However, geopolitical tensions quickly resurfaced after US forces reportedly struck two Iranian vessels accused of attempting to plant mines in the Strait of Hormuz. The escalation pushed Brent crude higher by more than 3.5%, lifting prices above $99.50 per barrel.

Meanwhile, bond markets provided additional support for growth stocks after the yield on the 10-year US Treasury note fell below 4.50%, retreating from levels above 4.56% at the end of last week. Lower Treasury yields generally improve sentiment toward high-growth technology companies by easing pressure on future earnings valuations.

In precious metals, gold slipped 0.4% but remained elevated above $4,500 per ounce, while the US Dollar Index (DXY) edged slightly lower to 99.16.

Cryptocurrency markets traded cautiously, with Bitcoin falling toward $75,900 after briefly approaching $77,400 during overnight trading. Investors continued monitoring liquidity conditions and geopolitical developments for direction.

Analysts noted that markets remain highly sensitive to both economic and geopolitical headlines, particularly as investors continue assessing the outlook for inflation and US interest rates. Dean Chen of Bitunix stated that cryptocurrency performance is expected to remain closely tied to global liquidity conditions and overall investor risk appetite until broader economic uncertainty eases.

Market Outlook

Global markets are expected to remain driven by two major themes in the near term: developments surrounding the US-Iran situation and upcoming US economic data, particularly inflation and consumer spending figures that could reshape expectations for Federal Reserve policy.

Technology and AI-related stocks are likely to continue attracting strong inflows following the latest semiconductor-led rally, especially if Treasury yields remain under control.

Meanwhile, oil markets may remain highly volatile as traders react to every new headline involving the Strait of Hormuz and Middle East negotiations. Cryptocurrency markets are also expected to remain sensitive to changes in liquidity expectations and broader market risk sentiment.

The technology-heavy Nasdaq surged 1.2%, while the S&P 500 gained 0.6%, with both indexes surpassing their previous record highs set on May 14. In contrast, the Dow Jones Industrial Average slipped 0.2%, weighed down by weakness in several large industrial and consumer-facing stocks.

Chipmakers once again led the rally on Wall Street after shares of Micron Technology soared 19% in one of the company’s strongest trading sessions in years. Investors reacted positively to expectations of accelerating AI-related demand and stronger long-term growth across the semiconductor industry.

The broader AI trade also continued attracting fresh capital. Shares of Dell Technologies climbed more than 3%, extending gains after last week’s sharp rally as investors continued betting on rising demand for servers, cloud infrastructure, and AI computing capacity.

However, gains across mega-cap technology stocks were uneven. Shares of NVIDIA closed slightly lower by 0.2% despite early session gains, while performance among the so-called “Magnificent Seven” remained mixed amid modest profit-taking near record highs.

Outside the technology sector, AutoZone came under heavy pressure after its shares plunged nearly 9% following weaker-than-expected quarterly earnings and sales results, making it one of the worst performers in the S&P 500.

Energy markets remained highly volatile as traders reacted to conflicting headlines surrounding US-Iran relations and tensions in the Strait of Hormuz.

US West Texas Intermediate crude futures dropped roughly 3% to trade below $94 per barrel after US President Donald Trump stated that peace negotiations were “going very well.” However, geopolitical concerns quickly resurfaced after US forces reportedly targeted two Iranian vessels accused of attempting to plant mines in the Strait of Hormuz. The developments pushed Brent crude higher by more than 3.5%, sending prices back above $99.50 per barrel.

Meanwhile, bond markets provided additional support for growth stocks after the yield on the 10-year US Treasury note fell below 4.50%, retreating from levels above 4.56% seen late last week. Lower yields tend to improve valuations for high-growth technology companies by easing pressure on future earnings expectations.

In precious metals, gold eased 0.4% but remained elevated above $4,500 per ounce, while the US Dollar Index (DXY) edged slightly lower to 99.16.

Cryptocurrency markets traded cautiously, with Bitcoin falling toward $75,900 after briefly approaching $77,400 overnight. Traders continued monitoring global liquidity conditions and geopolitical risk sentiment for direction.

Analysts noted that markets remain highly sensitive to both macroeconomic and geopolitical developments. Dean Chen of Bitunix stated that cryptocurrency performance is likely to remain closely linked to liquidity conditions and investor risk appetite until broader economic uncertainty begins to ease.

Market Outlook

Global markets are expected to remain driven by two dominant themes in the near term: geopolitical developments surrounding the US-Iran situation and incoming US economic data, particularly inflation and consumer spending figures that could reshape expectations for Federal Reserve interest rate policy.

Technology and AI-related stocks are likely to continue attracting strong investor interest following the latest semiconductor-led rally, especially if Treasury yields remain contained.

Oil markets could remain extremely volatile as traders react to every headline tied to the Strait of Hormuz and Middle East negotiations, while Bitcoin and broader cryptocurrency markets are expected to remain highly sensitive to shifts in liquidity expectations and overall risk appetite.

The Dow Jones Industrial Average delivered the strongest performance of the session, rising around 0.6%, or nearly 275 points, to close at a fresh all-time high, surpassing the previous record set in February. Meanwhile, the S&P 500 gained 0.2%, while the tech-heavy Nasdaq Composite edged up just 0.1%.

Markets entered the session with strong momentum after Wednesday’s rally ahead of NVIDIA earnings, but investor enthusiasm cooled slightly after the chipmaker’s stock fell roughly 2% despite delivering results that exceeded Wall Street expectations.

Nvidia reported strong quarterly earnings, upbeat revenue guidance, and continued explosive growth in AI-related demand, particularly across data centers and advanced semiconductor infrastructure. However, the muted stock reaction suggested investors may already have priced in much of the anticipated growth tied to the global AI boom.

The results reinforced confidence in the long-term outlook for artificial intelligence, although traders appeared increasingly sensitive to valuation concerns after the sector’s enormous rally over the past year.

Bond markets offered some support to equities, with the yield on the benchmark 10-year US Treasury note easing to 4.57% after touching 4.69% earlier this week — its highest level since January 2025. Lower yields tend to benefit growth and technology stocks by reducing pressure on future earnings valuations.

Oil prices experienced sharp intraday volatility amid ongoing geopolitical uncertainty involving Iran. Reports that Tehran remains committed to retaining enriched uranium briefly reignited fears surrounding Middle East tensions and global energy supplies.

However, crude later reversed lower as optimism surrounding a possible diplomatic breakthrough resurfaced. West Texas Intermediate crude fell 0.9% to settle near $97.40 per barrel, while Brent crude declined 2.3% to close around $102.58.

One of the strongest themes of the session emerged in quantum computing stocks after the US government announced significant funding support under the CHIPS and Science Act.

IBM surged nearly 12% after revealing it had secured $1 billion in funding to build a factory focused on quantum computing chips. Meanwhile, D-Wave Quantum soared more than 30%, while Rigetti Computing jumped over 25%.

Elsewhere, some major stocks faced heavy selling pressure. Walmart fell 7%, while Intuit plunged 20% after announcing plans to cut 17% of its workforce as part of a major restructuring effort.

IPO speculation also attracted major investor attention. Reports indicated that SpaceX had submitted paperwork for a potential Nasdaq listing under the ticker “SPCX” in what could become the largest IPO in financial market history.

At the same time, reports suggested OpenAI may confidentially file for an IPO in the coming days. The news boosted shares of SoftBank Group by roughly 20% in Tokyo trading due to its significant investment exposure to OpenAI.

In other markets, gold edged slightly higher to $4,540 per ounce, Bitcoin traded relatively flat near $77,600, and the US Dollar Index climbed to 99.18.

Market Outlook

Markets are expected to remain highly focused on artificial intelligence and technology stocks in the coming sessions as investors continue digesting Nvidia’s earnings and reassessing valuation levels across the sector.

While strong AI demand continues supporting long-term bullish sentiment, the weaker reaction in Nvidia shares may signal growing investor caution toward heavily priced growth stocks.

Geopolitical developments involving Iran will also remain a major driver for oil prices, Treasury yields, and broader market risk appetite. Any escalation in tensions or disruption to energy markets could quickly revive volatility across global assets.

Investors will additionally monitor Federal Reserve commentary and inflation expectations closely, particularly as energy prices and bond yields continue influencing expectations for future US interest-rate policy.

The technology-heavy Nasdaq gained roughly 0.9%, while the Dow Jones Industrial Average and S&P 500 both advanced 0.8%.

The Dow Jones closed above the 50,000-point level for the first time since February, while the S&P 500 surpassed the 7,500-point mark for the first time in history, reflecting continued investor enthusiasm surrounding artificial intelligence, resilient corporate earnings, and broader optimism around the US economy.

Technology giants delivered mixed performances, but NVIDIA once again led the market higher, surging more than 4% to a new all-time high.

Investor sentiment toward NVIDIA remained supported by strong global demand expectations for AI infrastructure, particularly as NVIDIA CEO Jensen Huang participated in the high-profile summit between US President Donald Trump and Chinese President Xi Jinping in Beijing.

The summit continued attracting intense market attention amid expectations that trade, semiconductor policy, artificial intelligence development, and energy cooperation would remain central topics of discussion.

In the IPO market, Cerebras Systems dominated headlines after its shares surged nearly 68% during their first trading session. The company successfully raised approximately $5.5 billion in what became the largest US initial public offering of the year so far, underscoring the extraordinary investor appetite surrounding AI-focused businesses.

Meanwhile, Cisco Systems jumped 13% after posting stronger-than-expected quarterly earnings and issuing optimistic forward guidance.

Cisco also announced workforce reductions as part of a broader strategic shift toward higher-growth segments including semiconductors, optics, cybersecurity, and artificial intelligence infrastructure.

Elsewhere in post-earnings trading, Doximity fell 23%, while StubHub gained around 13%, and Klarna surged 20% following upbeat corporate updates and forecasts.

In commodity markets, oil prices edged modestly higher as traders continued monitoring geopolitical developments tied to the Beijing summit and ongoing Middle East tensions. West Texas Intermediate crude rose 0.7% to settle near $101.75 per barrel, while Brent crude closed slightly higher around $105.72.

The bond market remained under pressure, with the yield on the benchmark 10-year US Treasury note stabilizing near 4.48%, close to its highest level since July. Investors continued evaluating the outlook for Federal Reserve policy amid resilient economic conditions and persistent inflation concerns.

Meanwhile, gold futures declined 0.8% to approximately $4,670 per ounce as risk appetite improved across equity markets.

Bitcoin rebounded toward the $81,400 level after recovering from earlier losses, while the US Dollar Index continued strengthening to 98.84.
Market Outlook

Global markets are expected to remain heavily influenced by artificial intelligence momentum and technology-sector earnings in the near term, particularly as investors continue rotating capital toward semiconductor, infrastructure, and AI-linked companies.

The strong performances from NVIDIA, Cisco, and Cerebras have reinforced market confidence that institutional investment into artificial intelligence infrastructure remains in a powerful expansion phase.

At the same time, markets will continue closely monitoring developments from the Trump-Xi summit in Beijing, especially regarding trade policy, semiconductor access, and broader geopolitical tensions that could influence global supply chains and energy markets.

Attention also remains firmly on upcoming US economic data and the future direction of Federal Reserve policy under incoming Chair Kevin Warsh. Elevated Treasury yields and persistent inflation pressures could continue driving volatility across equities, currencies, and commodities despite the current strength in technology stocks.

If bond yields continue rising, high-growth sectors may face renewed valuation pressure. However, sustained optimism around AI demand and resilient corporate earnings could continue supporting Wall Street’s broader upward momentum in the weeks ahead.

The weakness extended globally. Asian markets closed mostly lower, led by declines in South Korea and India, while Wall Street had already set a negative tone in the prior session, with the Nasdaq sliding 2.4% and the S&P 500 falling 1.7%.

At the center of the shift in sentiment was a stark warning from Christine Lagarde, who cautioned that markets may be underestimating the scale and duration of the economic shock. She described the situation as “beyond what we can imagine,” highlighting that damage to energy infrastructure could take years to normalize and that second-order effects—particularly in supply chains—are only beginning to emerge.

Oil prices continued to climb, reinforcing inflation concerns. Brent crude traded above $110 per barrel, while US crude approached $96, as disruptions in the Strait of Hormuz—through which a significant share of global oil flows—persisted.

Scenario analysis from UBS underscores the range of potential outcomes. A short-lived disruption would likely result in only a temporary price spike, but a prolonged interruption to shipping could push oil toward $120, while a more severe scenario could see prices surge to $150 per barrel. In such a case, inflation in both Europe and the US could rise above 3.5%, with measurable impacts on economic growth.

Markets are also beginning to price in broader supply chain risks beyond energy. Lagarde pointed to helium—critical for semiconductor manufacturing—as one example of a commodity whose disruption has yet to be fully reflected in prices, suggesting that inflationary pressures may be more persistent and widespread than currently anticipated.

Safe-haven demand strengthened accordingly, with gold rising 1.3% and silver gaining over 2%, while bond yields moved higher as investors adjusted expectations for inflation and central bank policy.

Market Outlook

Markets remain caught between geopolitical uncertainty and incomplete pricing of second-order economic effects. While a near-term de-escalation could stabilize sentiment, the risk of prolonged disruption to energy flows and supply chains suggests that volatility is likely to persist. Elevated oil prices will remain a key driver, with inflation expectations and central bank responses shaping market direction. Investors should expect further downside risk in equities if conflict escalates, while commodities and safe-haven assets may remain supported in the near term.

The weakness extended globally. Asian markets closed mostly lower, led by declines in South Korea and India, while Wall Street had already set a negative tone in the prior session, with the Nasdaq sliding 2.4% and the S&P 500 falling 1.7%.

At the center of the shift in sentiment was a stark warning from Christine Lagarde, who cautioned that markets may be underestimating the scale and duration of the economic shock. She described the situation as “beyond what we can imagine,” highlighting that damage to energy infrastructure could take years to normalize and that second-order effects—particularly in supply chains—are only beginning to emerge.

Oil prices continued to climb, reinforcing inflation concerns. Brent crude traded above $110 per barrel, while US crude approached $96, as disruptions in the Strait of Hormuz—through which a significant share of global oil flows—persisted.

Scenario analysis from UBS underscores the range of potential outcomes. A short-lived disruption would likely result in only a temporary price spike, but a prolonged interruption to shipping could push oil toward $120, while a more severe scenario could see prices surge to $150 per barrel. In such a case, inflation in both Europe and the US could rise above 3.5%, with measurable impacts on economic growth.

Markets are also beginning to price in broader supply chain risks beyond energy. Lagarde pointed to helium—critical for semiconductor manufacturing—as one example of a commodity whose disruption has yet to be fully reflected in prices, suggesting that inflationary pressures may be more persistent and widespread than currently anticipated.

Safe-haven demand strengthened accordingly, with gold rising 1.3% and silver gaining over 2%, while bond yields moved higher as investors adjusted expectations for inflation and central bank policy.

Market Outlook

Markets remain caught between geopolitical uncertainty and incomplete pricing of second-order economic effects. While a near-term de-escalation could stabilize sentiment, the risk of prolonged disruption to energy flows and supply chains suggests that volatility is likely to persist. Elevated oil prices will remain a key driver, with inflation expectations and central bank responses shaping market direction. Investors should expect further downside risk in equities if conflict escalates, while commodities and safe-haven assets may remain supported in the near term.

Wall Street rebounds strongly… Oil collapses after Trump backs down on striking Iran, andmarkets breathe a sigh of relief.

US equities rallied sharply on Monday, recovering from recent losses as easing geopolitical tensions triggered a broad risk-on move across markets.

The Nasdaq Composite gained 1.4%, while the Dow Jones Industrial Average climbed 1.4%, adding more than 630 points. The S&P 500 rose 1.2%, snapping a four-week losing streak that had been driven by surging oil prices and heightened geopolitical risk.

The rebound followed comments from US President Donald Trump, who said military strikes against Iranian energy facilities would be postponed for five days after what he described as “productive talks.” The announcement eased immediate fears of supply disruption, although Iranian officials denied that any negotiations had taken place, underscoring ongoing uncertainty.

Energy markets saw a sharp reversal. West Texas Intermediate crude dropped around 10% to $88 per barrel after trading near $102 earlier in the session, while Brent crude fell back to $99 after briefly exceeding $114.

The pullback reflects a rapid unwinding of supply fears linked to potential disruption in the Strait of Hormuz, a critical artery for global energy flows.

Lower oil prices helped lift sectors sensitive to fuel costs, with airline stocks including Delta Air Lines, United Airlines, and American Airlines posting strong gains, alongside cruise operators.

The shift in sentiment also weighed on safe-haven assets. The US dollar index fell 0.6% to 99.10, while gold declined to around $4,410 per ounce.

US Treasury yields moved lower, with the 10-year yield easing to 4.34%, reversing earlier gains as investors rotated back into equities.

Technology stocks led the rebound, with Tesla rising 3.5% after recent weakness, alongside broader gains across the sector.

Market Outlook

Markets are likely to open with cautious optimism, supported by lower oil prices and a temporary easing of geopolitical tensions. The pullback in energy costs and yields creates a more supportive backdrop for equities, particularly growth and travel-related sectors.

However, the relief rally may prove fragile. The five-day delay in potential strikes does not resolve underlying tensions, leaving markets exposed to sudden reversals if the situation escalates again. Oil prices will remain a key barometer—any renewed spike could quickly reintroduce inflation concerns and pressure risk assets.

In the near term, investors will be watching closely for further developments between the US and Iran, as well as movements in bond yields and energy markets. While sentiment has improved, volatility is likely to remain elevated as markets continue to navigate a highly uncertain geopolitical environment.

A storm hits Wall Street... Stocks plummet for the fourth week and oil fuels market anxiety

US equities came under renewed pressure on Friday, extending a multi-week downturn as rising oil prices and higher bond yields combined with escalating geopolitical tensions to shake investor confidence.

The tech-heavy Nasdaq Composite led declines, falling 2.0%, while the S&P 500 dropped 1.5% and the Dow Jones Industrial Average lost 1.0%, shedding more than 440 points. The sell-off marks a fourth consecutive week of losses for major indices, underscoring a clear deterioration in market sentiment.

Small caps also weakened, with the Russell 2000 entering correction territory after falling 10% from recent highs. Both the Nasdaq and Dow briefly approached similar levels before trimming losses late in the session.

On a weekly basis, declines were broadly aligned, with the Dow and Nasdaq each down 2.1%, and the S&P 500 off 1.9%, reflecting persistent selling pressure across sectors.

The latest leg lower in equities has been driven primarily by a sharp move higher in energy prices. West Texas Intermediate crude approached $98.80 per barrel, while Brent crude climbed to around $112.65.

Oil has surged roughly 47% since tensions escalated between the United States and Iran, with disruptions to shipping through the Strait of Hormuz amplifying supply concerns.

At the same time, US Treasury yields moved higher, with the 10-year yield rising to 4.39%, its highest level since last July. Higher yields continue to pressure equity valuations, particularly in the technology sector, where future earnings are more sensitive to changes in discount rates.

The so-called “Magnificent Seven” remained at the centre of the sell-off, with Tesla leading declines, down 3.2%.

Elsewhere, Super Micro Computer plunged 33% following US accusations related to the alleged smuggling of advanced Nvidia chips to China, adding to the broader weakness in the semiconductor space.

Not all stocks moved lower. FedEx edged higher after raising its profit outlook, while Nexstar Media Group gained 1.7% following regulatory approval of its merger with Tegna.

In other asset classes, the stronger US dollar and rising yields weighed on precious metals. Gold fell 2.5% toward $4,500 per ounce, while silver dropped nearly 5% below $68.

The US dollar index rose 0.4% to 99.64, reflecting continued demand for the currency amid global uncertainty. Meanwhile, Bitcoin slipped to around $69,800 after failing to hold earlier gains.

Market Outlook

Markets are likely to remain under pressure in the near term, with three dominant forces shaping direction: elevated oil prices, rising bond yields, and ongoing geopolitical risk.

If crude prices continue to push higher and Treasury yields extend their climb, equity markets—particularly growth and technology stocks—could face further downside as valuation pressures intensify. The risk of a broader correction remains in play, especially if energy-driven inflation expectations begin to rise again.

That said, any signs of easing tensions in the Middle East or a pullback in oil prices could provide short-term relief. Investors will also be closely watching upcoming economic data and central bank commentary for signals on the path of interest rates, which remain a key driver of market sentiment.

For now, the balance of risks appears tilted to the downside, with volatility likely to persist as markets navigate a complex mix of macroeconomic and geopolitical headwinds.

Under the agreement, Uber—or its fleet partners—will purchase an initial 10,000 fully autonomous Rivian R2 vehicles, with the option to expand the fleet to as many as 50,000 units by 2030. The rollout is expected to begin in 2028, starting in San Francisco and Miami, before expanding to 25 cities across the US, Canada, and Europe by 2031.

The deal signals a deepening alignment between two companies betting on vertically integrated autonomy as the next frontier in mobility.

Uber CEO Dara Khosrowshahi highlighted Rivian’s end-to-end control over vehicle design, software, and manufacturing as a key differentiator, noting that the combination of integrated systems and real-world fleet experience supports Uber’s long-term confidence in the partnership.

The investment will be phased through 2031 and remains contingent on Rivian meeting key autonomous development milestones. Uber has already committed an initial $300 million, subject to regulatory approval.

For Rivian, the deal adds another layer to its evolving business model. The company, best known for its R1T pickup and R1S SUV, is preparing to launch its smaller and more affordable R2 platform, which will underpin the robotaxi fleet. At the same time, Rivian continues to scale its manufacturing footprint, including progress on its $5 billion Georgia facility.

Markets reacted modestly to the announcement. Rivian shares rose more than 3% in late European trading, while Uber stock edged slightly lower, suggesting investors are weighing long-term strategic upside against near-term execution risks.

Market Outlook

Uber’s move underscores a broader shift in the mobility sector, where autonomy is increasingly viewed as a margin expansion lever rather than a distant innovation. By removing driver costs, robotaxis have the potential to significantly improve unit economics in ride-hailing—if the technology and regulatory environment align.

For Rivian, the partnership offers a potential demand catalyst and a path toward scale beyond consumer vehicles. However, execution risk remains elevated. The timeline—first deployments in 2028—highlights how far the industry still is from fully commercialised autonomy.

Investors should watch three key factors. First, Rivian’s ability to deliver on autonomous milestones will determine whether Uber’s full investment is realised. Second, regulatory approvals across multiple jurisdictions could either accelerate or delay rollout timelines. Third, competitive pressure from established players in the autonomous space may intensify as commercialization nears.

In the near term, the deal reinforces the narrative that autonomous mobility remains a long-duration bet. In the longer term, however, successful execution could reshape cost structures across the ride-hailing industry and create a new battleground between vertically integrated EV makers and platform operators.

The index provider reviews constituents every quarter based on market capitalisation, profitability, liquidity, and sector balance to ensure the index reflects the most representative US large-cap companies.

Vertiv Holdings, Lumentum Holdings, Coherent Corp., and EchoStar Corporation will join the index, replacing Match Group, Molina Healthcare, Lamb Weston Holdings, and Paycom Software. The changes take effect before the market opens on 23 March.

With trillions of dollars benchmarked to the S&P 500, index inclusion typically triggers passive fund inflows. Markets responded quickly, with the four incoming stocks rising by an average of 8% following the announcement.

Notably, three of the four additions are directly tied to the AI build-out, highlighting how sustained investment in artificial intelligence is reshaping the composition of the index.

The latest rebalance reflects a broader structural shift that AI is becoming foundational to market leadership.

Big Tech is guiding for as much as $900bn in AI-related capital expenditure this year, driving demand across power systems, cooling solutions, and high-speed optical connectivity. Here’s more information on the newest members of the index:

Vertiv

Vertiv specialises in critical digital infrastructure, including power and thermal management systems for high-density data centres.

Demand has surged alongside AI workloads, particularly for liquid cooling and high-capacity power solutions. In its latest results, the company reported 252% year-on-year growth in organic orders, with backlog reaching $15bn, up 109%.

A book-to-bill ratio of 2.9x and forward guidance of up to 29% organic growth underscore strong demand visibility.

Vertiv’s inclusion reflects its central role in enabling hyperscalerexpansion and positions it as a key beneficiary of continued AI infrastructure investment.

Lumentum

Lumentum develops advanced optical components essential for high-speed data transmission in AI systems.

The company recently secured a multi-year partnership with Nvidia, including a $2bn investment to expand manufacturing and R&D capacity. The deal also includes multibillion-dollar purchase commitments.

The addition to the S&P 500 elevates the importance of optical technologies as a core layer in AI infrastructure, with Lumentumpositioned as a critical supplier in scaling next-generation data centre networks.

Coherent

Coherent focuses on photonics and laser technologies, particularly silicon photonics and optical interconnects used in large-scale AI clusters.

Like Lumentum, it has secured a $2bn strategic partnership with Nvidia, aimed at advancing high-performance optical solutions and expanding US manufacturing.

The company’s repositioning toward AI-driven applications has aligned it with long-term demand trends, and its inclusion signals growing recognition of photonics as essential to AI scalability and efficiency.

EchoStar

EchoStar is the only new entrant not directly tied to AI infrastructure.

The company operates in satellite communications, broadband, and video services through its DISH network. Its inclusion provides sector balance, adding exposure to communications within an otherwise AI-heavy rebalance.

Despite this distinction, EchoStar has also delivered strong performance, supported by resilience in telecom services amid broader technological shifts.

Market Outlook

The inclusion of AI-linked infrastructure providers into the S&P 500 shows that there’s a deepening shift from software-led AI narratives toward the physical backbone of compute.

In the near term, newly added names may benefit from index-driven buying and momentum flows, but valuations are already reflecting strong forward demand.

Looking ahead, the key question for investors is whether the current pace of AI capital expenditure, projected at hundreds of billions annually, can be sustained without overcapacity or margin compression.

If spending holds, companies tied to power, cooling, and optical connectivity are likely to remain structurally advantaged. However, any slowdown in hyperscaler investment could expose these names to sharp repricing.

U.S. stock markets closed last week on a weak footing, marking a third consecutive week of losses as rising oil prices and renewed inflation concerns weighed on investor sentiment. Energy markets have quickly re-emerged as the dominant macro driver, with crude prices climbing sharply following geopolitical tensions in the Middle East.

During Friday’s session, the Nasdaq Composite dropped 0.9%, while the S&P 500 slipped 0.6%, and the Dow Jones Industrial Average lost 0.3%. All three indices finished at their lowest closing levels of the year, highlighting a shift toward caution across equity markets.

The latest leg lower coincided with a fresh surge in oil prices. West Texas Intermediate (WTI) crude, the U.S. benchmark, climbed roughly 2.5% to trade near $98 per barrel. That represents a dramatic jump from the $67 level seen before the U.S. and Israeli strikes on Iran on February 28.

Meanwhile, Brent crude, the global benchmark, eased slightly to around $103 per barrel after closing above the $100 mark for the first time since August 2022 in the previous session.

With oil markets tightening rapidly, policymakers have begun moving to stabilize supply.

U.S. Treasury Secretary Scott Bisent announced that Washington would temporarily allow countries to complete purchases of Russian oil shipments already at sea, aiming to prevent further disruption in global energy flows.

At the same time, the International Energy Agency (IEA) said it plans to release around 400 million barrels from strategic reserves, describing the current situation as the largest supply disruption in modern oil market history.

These measures are designed to prevent oil prices from feeding into a fresh inflation surge.

Investors also digested new inflation data last week. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 2.8% year-on-year in January, slightly below expectations of 2.9%.

On a monthly basis, the index increased 0.3%, easing from 0.4% in December.

However, core PCE inflation — which excludes food and energy — remained sticky at 3.1% annually and 0.4% month-on-month, reinforcing the idea that inflation pressures have not fully disappeared.

At the same time, economic growth data showed signs of weakness. U.S. GDP growth for the fourth quarter was revised down to just 0.7%, roughly half the previous estimate, adding to concerns that the economy may be losing momentum.

In the bond market, yields moved higher as investors reassessed the outlook for inflation and interest rates.

The yield on 10-year U.S. Treasury bonds rose to 4.29%, up from 4.27% in the previous session, marking its highest closing level since early February.

Higher yields typically translate into more expensive borrowing for consumers and businesses, which can further weigh on economic activity and equity valuations.

Commodity markets saw mixed movements.

Gold futures fell around 2%, trading near $5,030 per ounce, while silver dropped sharply by about 5.5% to roughly $80.30 per ounce.

In currency markets, the U.S. dollar index gained 0.7% to reach 100.44, reflecting strong demand for the dollar as investors sought safety amid market uncertainty.

In the cryptocurrency market, Bitcoin traded near $71,200, recovering slightly after briefly dipping toward $70,000 overnight.

At the corporate level, several high-profile stocks experienced notable declines.

Adobe shares fell around 7% after CEO Shantanu Narayan announced plans to step down after 18 years leading the company.

Retailer Ulta Beauty was among the worst performers on the S&P 500, plunging 14% after issuing weak guidance for annual sales and earnings.

Major technology stocks — often referred to as the “Big Seven” — also moved lower collectively. Meta Platforms led the declines, dropping nearly 4% following reports that the launch of a new artificial intelligence model had been delayed due to performance concerns.

Elsewhere, fertilizer producers came under pressure. Mosaic shares fell about 6%, while CF Industries dropped roughly 4.5%.

Outside the United States, markets delivered a mixed performance.

Asian equities closed with mixed results, as Japanese stocks and several regional markets were pressured by rising oil prices and a stronger dollar, while some commodity-linked markets posted modest gains.

European markets, however, ended broadly lower as investors worried that higher energy costs could slow economic growth across the region.

Market Outlook

Looking ahead, investors are turning their attention to next week’s Federal Reserve policy meeting, where interest rates are widely expected to remain unchanged.

The central bank now faces a delicate balancing act: inflation remains stubborn, but economic growth appears to be slowing.

For traders, the immediate market direction may depend heavily on oil price movements and geopolitical developments. If crude continues climbing toward the $100–$110 range, inflation fears could intensify, potentially pushing bond yields higher and putting additional pressure on equities.

At the same time, any stabilization in energy markets — or signs that central banks remain comfortable holding rates steady — could help restore confidence and stabilize global risk sentiment.

For now, markets remain caught between rising energy costs and slowing economic momentum, a combination that is likely to keep volatility elevated in the weeks ahead.

US stock indices fell sharply at the close of trading on Thursday, amid a strong rise in oil prices and escalating concerns about global supply disruptions due to geopolitical tensions in the Middle East.

The Standard & Poor's 500 index fell by 1.5%, while the tech-heavy Nasdaq Composite index declined by about 1.8%.

The Dow Jones Industrial Average also fell by 1.6%, losing about 739 points during the session.

These losses came at a time when oil prices jumped significantly, after the International Energy Agency warned that a war with Iran had caused the biggest disruption to oil supplies in the history of the global market.

The agency had announced a day earlier the release of 400 million barrels from strategic reserves in an attempt to calm prices.

It also lowered its forecast for global supply growth in 2026 to about 1.1 million barrels per day, compared with its previous forecast of 2.4 million barrels per day.

In the same context, Iran’s new Supreme Leader stated that the Strait of Hormuz, one of the world’s most important oil shipping lanes, should remain closed to put pressure on adversaries, which has increased anxiety in global energy markets.

On the commodities front, West Texas Intermediate crude futures, the U.S. benchmark for oil prices, rose by more than 10% to $96.50 a barrel.

Brent crude, the global benchmark for oil prices, also climbed above $100 a barrel for the first time since August 2022.

In the bond market, the yield on 10-year US Treasury bonds rose to 4.26%, its highest level since early February, compared to the previous day's close of 4.23%.

In the metals and currency markets, gold futures fell by about 1.5% to around $5,100 an ounce, while silver fell by about 1% to $84.70.

In contrast, the US dollar index, which measures the performance of the US currency against a basket of major currencies, rose by 0.5% to 99.71 points.

Bitcoin also traded near the $70,400 level with a slight decline during the session.

Dean Chen, a market analyst at Bitonics, explained that uncertainty surrounding energy supplies and the potential for military escalation has pushed global markets into a state of anticipation, where geopolitical risks intersect with economic forecasts and monetary policies.

On the corporate front, shares of the major technology companies known as the Big Seven declined, with Tesla leading the losses with a drop of more than 3%.

Shares in Honda Motor Co., listed in the US, fell by more than 5% after the company announced it could incur expenses and losses of up to 2.5 trillion yen (about $15.75 billion) as a result of reassessing its strategy in the electric vehicle sector, expecting to post a net loss during the current fiscal year instead of making a profit.

In stock movements following the announcement of the results, shares of Bitco Health & Wellness jumped by about 35%, while shares of Dick's Sporting Goods rose slightly.

In contrast, UI Path shares fell by 8%, and Dollar General shares dropped by about 6%. Adobe shares also declined by nearly 1.5% before the market closed, ahead of its earnings announcement.

In Asia, markets were mixed amid continued concerns about rising energy prices. Japan's Nikkei 225 index fell, while China's Shanghai Composite index saw limited movement.

Hong Kong’s Hang Seng index also saw notable fluctuations as investors monitored geopolitical developments and their potential impact on the global economy.

In Europe, most stock exchanges closed lower, affected by rising oil prices and a decline in risk appetite. The Stoxx Europe 600 index fell, as did the German DAX and the French CAC 40, with investors turning to safer assets.

Market Outlook

Analysts expect caution to continue in global markets during today's session, as investors continue to monitor developments in the Middle East and their potential impact on energy supplies.

Investors are also watching oil price movements and US bond yields, along with any developments related to shipping traffic through the Strait of Hormuz, which could play a key role in determining the direction of markets in the coming period.

US equities ended Wednesday’s session with a cautious, slightly negative bias as investors weighed fresh inflation data against escalating geopolitical tensions in the Middle East. While technology stocks offered some support, rising oil prices and uncertainty around energy supply kept broader market sentiment fragile.

The Dow Jones Industrial Average closed down 0.6%, while the S&P 500 slipped 0.1%. The tech-heavy Nasdaq Composite managed to edge 0.1% higher, buoyed by strength in select technology names.

Energy markets, however, told a different story. West Texas Intermediate (WTI) crude climbed roughly 5% to settle near $87.65 per barrel, extending recent gains as traders focused on risks to global supply routes.

The rise came despite an extraordinary intervention by the International Energy Agency (IEA), which announced plans to release around 400 million barrels from strategic reserves—the largest coordinated stockpile release in the agency’s history. The move is aimed at stabilising energy markets amid mounting geopolitical risks.

Those risks centre on reports that Iran has planted naval mines in the Strait of Hormuz, one of the world’s most critical energy chokepoints through which roughly 20% of global oil shipments pass. Former US President Donald Trump warned that Washington could respond forcefully if the mines are not removed, raising the prospect of further escalation.

On the macroeconomic front, US inflation data landed largely in line with expectations. The Consumer Price Index (CPI) rose 2.4% year-on-year in February, while core CPI, which excludes food and energy, came in at 2.5%. The figures offered little immediate direction for markets.

Bond markets reflected ongoing caution. The yield on the 10-year US Treasury climbed to around 4.22%, up from 4.17% before the inflation report, signalling lingering uncertainty around the Federal Reserve’s interest-rate path.

Chris Zaccarelli, chief investment officer at Northlight Asset Management, noted that the inflation data itself was not alarming. However, he cautioned that the figures capture economic conditions before the latest Middle East tensions escalated, meaning the inflationary impact of higher energy prices may only appear in future readings.

At the company level, Oracle stood out as one of the session’s strongest performers. Its shares jumped nearly 9% after the company raised its long-term outlook, citing robust demand for artificial intelligence infrastructure and cloud services.

On the downside, Campbell’s Company shares fell roughly 7%, making it one of the S&P 500’s biggest laggards on the day.

Among the so-called “Magnificent Seven” technology giants, performance was mixed. Tesla led gains with a rise of around 2.2%, while other large-cap tech names traded unevenly.

Commodity markets also reflected the shifting risk environment. Gold futures dropped more than 1% to about $5,185 per ounce, while silver declined roughly 4% to near $86. Meanwhile, the US dollar index strengthened 0.4% to 99.23, benefiting from safe-haven demand.

In the cryptocurrency space, Bitcoin held relatively steady near $70,700, after dipping briefly toward $69,000 overnight.

Across global markets, trading remained cautious. Asian equities posted mixed results during Thursday’s session, with technology shares providing pockets of strength while energy volatility weighed on sentiment. European markets also opened unevenly as investors digested the latest US data and monitored developments in the oil market.

Market outlook

Looking ahead, traders will focus on upcoming US weekly jobless claims and additional housing market indicators, both of which could offer further clues about the health of the US economy.

However, the dominant market driver remains geopolitics. Oil price movements and developments in the Strait of Hormuz are likely to shape global risk sentiment in the coming sessions. Should energy prices continue climbing toward the $90–$100 range, investors may begin reassessing the inflation outlook—and with it, expectations for the Federal Reserve’s next move.

The most dramatic signal came from Porsche, which reported that extraordinary charges of roughly €3.9 billion in 2025 had nearly wiped out its operating profit. The accounting adjustments reduced the sports car maker’s automotive operating profit by 98%, from €5.3 billion in 2024 to just €90 million. At the group level, Porsche’s operating profit fell more than 92%, dropping to €413 million.

The charges reflect a major strategic shift rather than a direct cash loss. Much of the write-down relates to the reassessment of Porsche’s future earnings potential, which required the company to impair goodwill carried on Volkswagen’s balance sheet. Additional costs were tied to the abandonment of a planned next-generation electric vehicle platform and the financial impact of battery investments and US tariffs.

For years Porsche had been positioned as the prestige spearhead of Volkswagen’s electrification strategy, with the expectation that its strong margins and brand power would help justify the group’s enormous investment in electric vehicles. But the transition has proved more difficult than anticipated.

Demand for Porsche’s flagship EV, the Taycan, fell sharply last year, with deliveries down 22%. Overall vehicle deliveries also declined, slipping just over 10% to around 279,000 units, while revenue dropped nearly 12% to €32.2 billion. China, once a key growth market for European luxury brands, has become increasingly challenging as domestic manufacturers gain ground in both technology and price competitiveness. Porsche’s share of deliveries in China has already declined from 18% to 15%.

The company is now publicly recalibrating its electrification plans. Instead of accelerating toward a predominantly electric lineup, Porsche intends to extend the lifespan of combustion engine and plug-in hybrid models while scaling back expectations for battery-electric vehicle adoption through 2035. The shift is costly in the short term, as years of investment in EV platforms must now be recognised in a single accounting adjustment.

The implications extend beyond Porsche itself. Until recently, the brand was widely regarded as one of the most profitable car manufacturers in the world, posting operating margins of 14.5% in 2024. Those margins made Porsche one of the key profit engines inside Volkswagen’s sprawling portfolio of brands, many of which operate with far thinner profitability. When Porsche’s automotive margin collapsed to just 0.3%, the group lost one of its most reliable sources of earnings almost overnight.

The pressure is now visible at the Volkswagen group level. The company reported net profit of €6.9 billion for 2025, a decline of 44% from the previous year and its weakest performance since the diesel emissions scandal that rocked the company a decade ago. Operating profit fell sharply as well, while revenue stagnated at roughly €322 billion.

Chief financial officer Arno Antlitz described the year as one of the most challenging in recent memory, citing geopolitical tensions, new trade barriers, and intensifying competition in global automotive markets. Although deliveries across Europe held relatively steady, that stability was not enough to offset declining demand in China and North America.

In response, Volkswagen is expanding an aggressive restructuring programme that now includes plans to eliminate around 50,000 jobs in Germany by 2030, significantly more than previously announced. Porsche itself is expected to cut roughly 3,900 positions, including temporary staff.

Competition in China has become particularly intense. Local manufacturers such as BYD, Geely and Nio are rapidly closing the technological gap with European brands while offering vehicles at lower prices. For companies that once relied heavily on Chinese demand to sustain global growth, the shift represents a structural challenge rather than a temporary slowdown.

The group is attempting to respond by strengthening its “in China for China” strategy, developing vehicles and supply chains locally to better match regional market conditions. At the same time, trade tensions and tariffs in the United States are increasing costs and complicating expansion plans for several Volkswagen brands.

Despite the weak results, the company has signaled that conditions may improve over the coming year. Profitability showed signs of stabilising toward the end of 2025, and Volkswagen now expects its operating margin to recover to between 4% and 5.5% in 2026, after falling to 2.8% last year.

For investors and industry observers, however, the deeper question is what the developments reveal about the global electric vehicle transition. European manufacturers had expected EV adoption to accelerate rapidly, supported by regulatory mandates and government incentives. Instead, demand has proven more uneven, with consumers in many markets still favouring hybrids or combustion engines, particularly as subsidies are reduced and charging infrastructure remains inconsistent.

Market Outlook

If Porsche, one of the industry’s strongest premium brands, is struggling to maintain profitability while pushing aggressively into electric vehicles, the challenge for mass-market manufacturers may be even greater. Analysts increasingly believe that the shift toward electrification will occur more gradually than previously expected, forcing automakers to balance electric investments with continued development of hybrid and combustion technologies.

For Volkswagen and its peers, the next phase of the transition is likely to be defined less by rapid expansion and more by strategic adjustment. The companies that succeed will be those able to adapt to changing consumer preferences, intensifying global competition, and a regulatory environment that continues to evolve as the economics of electrification come into clearer focus.

US equities closed higher on Monday after recovering from steep intraday losses, as easing fears around the Middle East conflict and a sharp drop in oil prices helped stabilize investor sentiment.

The Dow Jones Industrial Average gained about 240 points, or 0.5%, after falling nearly 900 points earlier in the session. The S&P 500 rose 0.8%, while the tech-heavy Nasdaq Composite climbed 1.4% as major technology stocks rebounded.

Markets were initially shaken by extreme volatility in energy prices following last week’s surge in crude oil, which briefly raised fears of a new inflation shock. Oil had rallied sharply after tanker traffic through the Strait of Hormuz—a critical route for roughly 20% of global oil trade—was disrupted during the conflict involving Iran.

Overnight, West Texas Intermediate (WTI) crude briefly surged above $119 per barrel before reversing course. Prices fell sharply after G7 finance ministers signaled they could release strategic petroleum reserves to offset potential supply disruptions.

Investor sentiment improved further after comments from US President Donald Trump, who said the conflict in the region was “very close to its end” and confirmed that ships had begun moving again through the Strait of Hormuz. Trump also suggested the United States may take measures to ensure safe passage through the waterway.

Following those developments, WTI crude dropped about 6% to around $85 per barrel by the end of Monday’s session, easing fears of sustained energy-driven inflation.

Analysts say the retreat in oil helped calm markets that had been pricing in a potential supply shock. Economists at Bank of America noted that oil prices roughly $15 above pre-war levels would not necessarily pose a major inflation risk, but warned that prices remaining above $100 per barrel for an extended period could create broader economic pressure.

Meanwhile, Chicago Federal Reserve President Austan Goolsbee cautioned that a combination of rising oil prices and weakening labor markets could raise the risk of stagflation, one of the most challenging scenarios for central banks.

Recent labor data showed the US unemployment rate rising to 4.4%, slightly above expectations of 4.3%, reinforcing concerns that economic momentum may be slowing.

In bond markets, the yield on the 10-year US Treasury fell to around 4.10%, down from 4.13% on Friday after briefly touching 4.21% earlier in the session. The US dollar index edged 0.1% lower to 98.86.

Commodity markets were mixed. Gold slipped 0.3% to about $5,140 per ounce, while silver gained 3% to around $86.80.

Cryptocurrencies also moved higher, with Bitcoin rising to roughly $69,200 after earlier dipping near $65,600.

Airline and cruise stocks rallied as falling oil prices improved fuel cost expectations. Shares of Delta Air Lines, United Airlines, and American Airlines posted solid gains, while cruise operators including Norwegian Cruise Line, Carnival, and Royal Caribbean also advanced.

Technology stocks helped drive the broader market recovery. Shares of SanDisk surged 12%, while Western Digital climbed about 7%.

Among notable individual movers, Hims & Hers Health jumped 44% after announcing an agreement with Novo Nordisk to distribute the Danish company’s weight-loss drugs through its digital platform. Live Nation Entertainment also gained about 6% after reaching a settlement with the US Department of Justice that allows it to retain ownership of Ticketmaster.

European markets closed mostly flat as investors remained cautious amid ongoing geopolitical risks. Germany’s DAX was little changed, while France’s CAC 40 and Britain’s FTSE 100 hovered near previous closing levels.

In Asia, sentiment was weaker. Japan’s Nikkei 225 and Hong Kong’s Hang Seng both declined as investors weighed the potential economic impact of higher energy prices. China’s Shanghai Composite traded largely sideways.

Market outlook

Looking ahead, global markets are likely to remain highly sensitive to developments in the Middle East, particularly the stability of shipping through the Strait of Hormuz.

Traders will also monitor incoming economic data and signals from the Federal Reserve for clues about the trajectory of inflation and interest rates.

Analysts say that oil stabilizing below $100 per barrel could help support equities and reduce inflation concerns. However, any renewed disruption to energy supplies or escalation in the conflict could quickly reintroduce volatility across global financial markets.

US equities closed sharply lower on Thursday as rising geopolitical tensions in the Middle East rattled investors and pushed energy prices higher. Reports that Iran had targeted an oil tanker in the Strait of Hormuz, one of the world’s most critical oil shipping routes, triggered a wave of risk-off sentiment across global markets.

The Dow Jones Industrial Average led the decline, falling about 785 points, or 1.6%, while the S&P 500 lost 0.6%. The Nasdaq Composite held up better but still slipped 0.3%, as weakness in cyclical sectors offset resilience in some technology stocks.

The drop came just one day after markets staged a rebound, with the Dow snapping a three-session losing streak in Wednesday’s trading.

Within the Dow, selling was broad-based, with 24 of the 30 components ending the day lower. Goldman Sachs, Walmart, and Caterpillar were among the biggest laggards, each falling more than 3%. By contrast, Salesforce stood out on the upside, gaining over 4%.

Nvidia also drew attention after reports that the US government may introduce new restrictions on exports of advanced AI chips. The stock recovered from earlier losses and finished the session slightly higher, up around 0.2%, while Microsoft led gains among the megacap tech names with a 1.4% rise.

Oil surge drives market caution

Energy markets remained the key driver of sentiment. West Texas Intermediate (WTI) crude briefly climbed above $82 per barrel, its highest level since July 2024, after Iran announced the tanker attack.

Prices later eased slightly but still traded near $80 per barrel, marking a weekly gain of nearly 19% as investors priced in the risk of supply disruptions through the Strait of Hormuz.

Higher oil prices also pushed bond yields upward. The yield on the 10-year US Treasury rose to around 4.13%, up from 4.10% the previous session and significantly above last week’s 3.95% level.

Precious metals pulled back despite the geopolitical tension. Gold fell about 1% to roughly $5,085 per ounce, while silver declined 1.2% to around $82.15.

The US dollar index strengthened 0.3% to 99.04, reflecting continued demand for safe-haven assets.

In the crypto market, Bitcoin remained volatile. The cryptocurrency dropped to around $63,000 following the initial attacks earlier in the week before recovering to trade near $71,200, though still below its recent highs above $73,500.

Earnings and corporate developments also drove notable stock moves. On the upside, Broadcom rose 4.8%, Kroger climbed 5.3%, and Burlington Stores surged 6.7% following their latest financial results.

Meanwhile, Ciena fell about 13%, leading losses on the S&P 500, while StepHub declined roughly 12%. Costco slipped 2.4% ahead of its earnings release after the market close.

One standout was Trade Desk, which jumped 18% after reports that OpenAI had held preliminary discussions with the company about potential advertising partnerships.

Elsewhere, global markets reflected a cautious tone. Asian markets closed mixed. Japan’s Nikkei 225 declined amid pressure from higher energy costs, while Hong Kong’s Hang Seng posted modest gains led by technology stocks. China’s Shanghai Composite traded largely flat as investors monitored geopolitical developments.

In Europe, equities broadly moved lower, with the Stoxx Europe 600 slipping as airline and industrial stocks came under pressure from rising oil prices and escalating geopolitical risks.

Market outlook

Looking ahead, analysts expect continued volatility in global markets as investors track developments in the Middle East and monitor oil price movements.Traders will also focus on upcoming US economic data, which could provide further clues about inflation trends and the future policy path of the Federal Reserve.

U.S. stock indices closed sharply lower on Friday, capping a volatile month as stronger-than-expected inflation data and escalating geopolitical tensions weighed heavily on investor sentiment.

The Dow Jones Industrial Average fell more than 1%, losing nearly 520 points, while the Nasdaq Composite declined about 0.9% and the S&P 500 dropped 0.4%, with financial and growth stocks leading losses.

Markets came under pressure after the latest Producer Price Index (PPI) report showed a monthly increase of 0.5%, exceeding expectations of 0.3%. The data reinforced concerns that inflation remains persistent, raising the likelihood that the Federal Reserve may keep interest rates higher for longer.

However, inflation worries were overshadowed by geopolitical developments after a major military confrontation erupted in the Middle East involving the United States and Iran. The escalation, which reportedly included strikes resulting in the death of Iranian Supreme Leader Ayatollah Ali Khamenei, triggered retaliatory threats from Iran and heightened risks to global energy supplies following the closure of the Strait of Hormuz.

The situation has shifted market focus from monetary policy uncertainty toward pricing in open-ended geopolitical risk.

Energy and Safe Havens Rally

Oil prices surged amid fears of supply disruptions. West Texas Intermediate (WTI) crude settled near $67.30 per barrel, while Brent crude climbed above $80, with some forecasts pointing toward a potential move to $100 should tensions intensify amid tight global inventories and rising seasonal demand.

Safe-haven assets also rallied sharply. Gold rose to $5,280 per ounce and is projected by some analysts to test the $5,400–$5,600 range in the near term. In a scenario of broader regional escalation, prices could extend gains toward new record highs above $5,700 as investors seek protection from volatility.

Silver jumped more than 7%, reflecting its typically higher sensitivity to shifts in risk sentiment.

Outlook: Markets Brace for Heightened Volatility

Markets are expected to open the new trading week under dual pressure from persistent inflation and geopolitical uncertainty.

Analysts warn that major U.S. indices could face declines of 2% to 4% if negative developments continue, potentially testing key technical support levels. Aviation, travel, manufacturing, and rate-sensitive technology sectors appear most vulnerable, while energy and defense stocks may outperform.

European markets could also face deeper losses due to the region’s dependence on energy imports, with major indices potentially falling between 1.5% and 3% alongside renewed pressure on the euro.

Asian equities may see broad selling if supply-chain risks intensify, particularly in export-dependent economies such as Japan and South Korea.

Currency and Crypto Markets

The U.S. dollar index is expected to strengthen on safe-haven demand, potentially rising more than 1% despite ending last week slightly lower.

Bitcoin, which retreated to $65,600 after briefly approaching $68,000, remains in a fragile range. Analysts expect volatility between $62,000 and $70,000 in the near term. A shift toward digital assets as hedges could push prices toward $72,000, while broader risk aversion could drive a drop below $60,000.

Market Snapshot

Markets now face a rare convergence of inflationary pressure and escalating military conflict, increasing the probability of elevated volatility in the days ahead. Near-term trends favorstronger oil and gold prices, continued pressure on equities, and a firm U.S. dollar, with market direction likely to hinge on rapidly evolving geopolitical developments.

U.S. stock indices mostly ended Thursday’s session lower, snapping a two-day rally, even after Nvidia reported quarterly earnings that exceeded analysts’ expectations.

The technology-heavy Nasdaq Composite fell 1.2%, while the broader S&P 500 declined 0.5%. The Dow Jones Industrial Average, however, managed to close slightly higher.

The pullback followed strong gains earlier in the week, when markets rebounded from sharp losses driven by renewed concerns over tariffs and uncertainty surrounding the impact of artificial intelligence on certain sectors.

Despite posting better-than-expected results, Nvidia shares dropped about 5.5%. CEO Jensen Huang noted continued strong demand as companies accelerate investment in artificial intelligence infrastructure, but investors appeared to lock in profits after the stock’s significant recent rally. The decline weighed on the broader technology sector, which was the worst-performing segment of the market during the session.

Elsewhere, Salesforce shares rose roughly 4% despite issuing a full-year revenue forecast that came in below analysts’ expectations, suggesting investor confidence in the company’s longer-term outlook.

Among notable post-earnings movers, IonQ surged more than 20%, while JM Smucker gained about 9%. In contrast, C3.ai plunged 18%, and The Trade Desk fell approximately 5%.

Media and entertainment stocks delivered mixed performances. Paramount Global jumped around 10%, while Warner Bros. Discovery edged slightly lower following its results announcement. Netflix shares advanced more than 2% amid reports of potential acquisition activity.

In cryptocurrency markets, Bitcoin retreated to around $67,500 after briefly approaching $69,900 overnight.

Bond markets saw modest demand, with the yield on the 10-year U.S. Treasury falling below 4.02% from roughly 4.05% previously.

Commodity prices were mixed. Gold futures slipped 0.2% to $5,215 an ounce, while silver declined about 2% to $89.35. U.S. crude oil futures rose to $65.50 per barrel. Meanwhile, the U.S. dollar index gained 0.1% to 97.77.

Market outlook

Market sentiment is expected to remain sensitive to incoming economic data and comments from Federal Reserve officials, particularly regarding the outlook for interest rates and inflation.

Investors will also closely monitor upcoming corporate earnings — especially within the technology sector — to determine whether artificial intelligence-driven momentum can sustain further market gains or whether equities may enter a period of heightened volatility and short-term profit-taking.

US stock indices ended Wednesday’s session higher for a second consecutive day, supported largely by technology shares as investors positioned themselves ahead of Nvidia’s highly anticipated earnings report. The results are widely expected to provide fresh signals on the strength and sustainability of the artificial intelligence investment cycle.

The Nasdaq Composite led the gains, rising 1.3%, while the S&P 500 advanced 0.8% and the Dow Jones Industrial Average climbed 0.6%. The positive momentum follows sharp volatility earlier in the week driven by concerns over a potential slowdown in AI-sector growth and continued uncertainty surrounding US trade policy.

Nvidia shares moved higher ahead of the earnings release, reflecting investor expectations that the company’s outlook could significantly influence the broader technology sector, given its central role in AI chip development. Salesforce also rose ahead of its results, while earnings season more broadly produced mixed reactions, with some companies posting strong gains and others facing declines due to disappointing forecasts.

Advanced Micro Devices shares slipped after strong gains in the previous session, which had been supported by news of an AI-related computing partnership with Meta Platforms.

Elsewhere, Bitcoin recovered toward the $69,000 level after briefly dipping below $64,000 overnight, suggesting improving risk appetite. The yield on the 10-year US Treasury note rose to around 4.05%, a level closely watched for its impact on borrowing costs and equity valuations.

In commodities, gold edged higher, silver posted stronger gains, oil prices softened slightly, and the US dollar weakened modestly against major currencies.

Market outlook

Investor attention now turns squarely to Nvidia’s earnings and forward guidance. A strong outlook could reinforce bullish sentiment around AI-driven growth, while weaker signals may revive caution, particularly given ongoing trade tensions and rising bond yields.

Rather than operating as a standalone chatbot, Claude can now work directly inside business software environments, accessing contextual data without requiring users to switch applications. The goal, according to Anthropic, is to position Claude as a virtual collaborator capable of tasks such as analysing spreadsheet data, drafting presentations, modelling financial scenarios, generating HR documentation, and summarising vendor proposals.

The rapid pace of development has unsettled investors, with earlier plugin launches triggering sharp declines in some software stocks amid fears that AI tools could disrupt established enterprise software providers. Anthropic maintains its strategy is complementary rather than competitive, positioning Claude as a platform that enhances existing tools rather than replacing them.

Still, competitive pressure is intensifying. OpenAI has also expanded enterprise offerings, partnering with major consulting firms to deploy AI agents in corporate workflows. While adoption is accelerating, some analysts caution that security, governance, and data-privacy concerns may slow widespread enterprise uptake.

For now, markets appear cautious: enthusiasm for AI productivity gains is tempered by uncertainty over how quickly businesses will trust AI deeply enough to reshape core workflows.

Rivals Rattled

Anthropic’s moves have raised concerns that its tools could challenge existing analytics and research products in particular. A software industry ETF fell nearly 6% in a single day, its worst session since April. Thomson Reuters saw its biggest single-day stock drop on record in early February, plunging nearly 16%. LegalZoom sank almost 20%. FactSet dropped more than 10%. European data analytics giant RELX fell 14%.

US stocks opened the week sharply lower after renewed trade tensions emerged following President Donald Trump’s announcement of new global tariffs. The move, which followed a Supreme Court ruling that overturned most of his earlier “reciprocal” tariffs, injected fresh uncertainty into global markets and quickly reversed last week’s positive momentum.

The Dow Jones Industrial Average led the declines, dropping 1.7% and shedding more than 820 points. The S&P 500 fell around 1%, while the Nasdaq Composite lost about 1.1%. The selloff erased gains made during a strong prior week, when the Nasdaq had snapped a five-week losing streak.

Trump initially announced a 10% global tariff increase on Friday before raising it to 15% the next day. The administration indicated the new tariffs would not rely on powers under the International Emergency Economic Powers Act — the legal basis the Supreme Court said did not justify earlier tariff measures. This policy shift has heightened uncertainty around global trade rules and economic growth prospects.

Concerns intensified after reports that the European Union may pause ratification of its trade agreement with Washington until the situation becomes clearer, potentially escalating transatlantic trade tensions.

Investors moved toward safe-haven assets. The yield on the 10-year US Treasury fell below 4.03% from 4.09% previously, while the dollar index edged down about 0.2%. Gold surged roughly 3% to $5,225 per ounce and silver jumped 6%.

Oil prices slipped slightly, with West Texas Intermediate crude down to around $66 per barrel, while Bitcoin traded near daily lows around $64,700.

Market sentiment remains cautious. Unless policymakers clarify trade measures soon, volatility is likely to persist, with investors favouring defensive assets until the global economic outlook becomes more predictable.

US stock indexes closed higher on Friday, capping a positive week after the Supreme Court struck down sweeping tariffs imposed last year by President Donald Trump, dealing a blow to a central plank of his economic agenda.

The Nasdaq rose 0.9% on the session, finishing the week up 1.5% and snapping a five-week losing streak. The S&P 500 gained 0.7% on Friday for a weekly advance of 1.1%, while the Dow Jones Industrial Average climbed 0.5%, posting a more modest 0.3% gain for the week.

The rebound followed a volatile prior session, when stocks slipped as oil prices surged to six-month highs amid a US military buildup in the Middle East aimed, according to reports, at pressuring Iran toward a nuclear agreement.

In a 6–3 ruling, the Supreme Court found that the tariffs imposed on most US trading partners were unlawful, arguing that the president had exceeded his authority by invoking emergency powers to levy import taxes.

The decision came against a mixed economic backdrop. The personal consumption expenditures (PCE) index — the Federal Reserve’s preferred inflation gauge — showed prices rising 2.9% year-on-year in December, above expectations. Core PCE, which excludes food and energy, climbed to 3% from 2.8% in November. The data release had been delayed by a month due to the government shutdown.

Meanwhile, fourth-quarter GDP grew at an annualised pace of 1.4%, well below the 4.4% rate recorded in the third quarter and weaker than expected, amid the longest government shutdown in US history. Additional reports pointed to slower activity in both manufacturing and services, although consumer confidence edged higher and new home sales surprised to the upside late in 2025.

In fixed income markets, the 10-year Treasury yield ticked up to 4.09% from 4.08%, a level closely watched for its impact on mortgage and consumer borrowing costs.

Among individual stocks, AppLovin gained about 2% on reports it is developing its own social networking platform. Grail plunged roughly 50% after disappointing cancer treatment trial results, while Akamai Technologies fell 14% after issuing weaker-than-expected guidance.

Large-cap technology stocks were mostly higher. Alphabet rose around 4%, Amazon climbed 2.5%, and Nvidia, Apple and Meta Platforms each gained more than 1%. Microsoft edged slightly lower, and Tesla was little changed.

In commodities, West Texas Intermediate crude settled near $66.50 a barrel. Gold futures rose 2.5% to $5,125 an ounce amid rising geopolitical tensions, while silver jumped 9% to $84.50 an ounce. Bitcoin traded near $67,800, off its intraday high above $68,000. The US dollar index slipped 0.2% to 97.75.

Looking ahead, markets are likely to remain sensitive to political developments around trade policy and any potential alternative measures from the administration. Investors will also watch bond yields and upcoming inflation data closely as debate continues over the Federal Reserve’s policy path. Stability in oil prices and easing geopolitical tensions could help equities extend gains, particularly in technology, while any renewed escalation or further signs of slowing growth may drive flows toward traditional safe havens such as gold and Treasuries.

U.S. stocks declined on Thursday, snapping a three-day winning streak for both the Dow Jones Industrial Average and the S&P 500, as oil prices climbed to six-month highs amid escalating tensions between the United States and Iran.

The Dow Jones Industrial Average led losses, falling 0.5%, while the S&P 500 dropped 0.3%. The Nasdaq Composite also declined by roughly 0.3%, following a prior session that had seen a modest recovery in technology stocks.

On the corporate front, Walmart shares slipped 1.5% despite reporting strong quarterly sales growth, suggesting investors may be more concerned about forward guidance than recent performance. Carvana shares fell sharply, dropping 8% after the online used-car retailer missed key profitability expectations.

In contrast, DoorDash gained 1.5% after forecasting stronger user spending in the current quarter, helping offset otherwise modest earnings results.

Technology stocks delivered mixed performance. Apple fell more than 1%, while Nvidia, Alphabet, and Microsoft posted slight declines. Meanwhile, Amazon, Meta, Broadcom, and Tesla recorded modest gains. Markets also reacted to reports that OpenAI may be nearing a $100 billion funding round, with significant planned investment in computing infrastructure.

In commodities, oil surged to its highest level since August as the United States strengthened its military presence in the Middle East amid ongoing nuclear negotiations with Iran. West Texas Intermediate crude rose about 2% to $66.55 per barrel. Gold edged up 0.2% to $5,015 an ounce, while silver gained 0.7% to $78.20.

Bond markets were relatively stable, with the yield on the 10-year U.S. Treasury note easing slightly to 4.07% from 4.08% the previous day. Bitcoin traded near $67,000 after briefly dipping below $66,000, while the U.S. dollar index ticked up 0.1% to 97.80.

Market Outlook

Markets are expected to remain sensitive to geopolitical developments, particularly U.S.–Iran tensions, as well as oil price volatility and its potential inflationary impact. Investors will also be watching upcoming economic data closely, as it could influence monetary policy expectations at a time when overall risk appetite appears to be softening.

U.S. equities finished Wednesday in positive territory, although gains faded toward the close as investors adopted a more cautious stance following the release of minutes from the Federal Reserve’s January meeting. The document revealed notable differences among policymakers regarding the future direction of interest rates, adding a layer of uncertainty to markets already sensitive to inflation and labour data.

The tech-heavy Nasdaq Composite led the advance with a 0.8% gain, while the S&P 500 rose 0.6% and the Dow Jones Industrial Average added roughly 0.3%. The session followed a volatile Tuesday, when renewed concerns about technology stock valuations triggered sharp intraday swings.

Fed minutes showed policymakers divided on next steps. Some officials indicated they remain open to further rate hikes if inflation proves persistent, while others favour eventual easing to support economic activity. The committee ultimately voted in January to hold rates steady for the first time since July.

Recent economic data has complicated the outlook. Stronger-than-expected inflation and jobs figures last week reduced expectations for near-term rate cuts, while investors now await Friday’s release of the personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge.

Technology stocks regained some momentum. Nvidia rose 1.6% after Meta announced plans to purchase millions of chips to expand its data centre infrastructure. Other AI-linked semiconductor firms, including Micron Technology and Western Digital, also advanced, while Meta itself gained 0.6%.

Among the other major tech names, Amazon climbed about 2% despite Berkshire Hathaway reducing its stake. Apple, Alphabet, Microsoft, and Tesla posted modest gains.

Corporate earnings news produced mixed reactions. Palo Alto Networks dropped 7% after issuing weaker-than-expected guidance, while Cadence Design Systems surged 8% and Analog Devices rose 3% after beating revenue and profit forecasts.

In fixed income markets, the yield on the benchmark 10-year U.S. Treasury note edged up to 4.08% from 4.06%, underscoring continued sensitivity to shifting rate expectations.

Energy markets were stronger, with West Texas Intermediate crude jumping about 4.5% to $65.10 a barrel following comments from U.S. Vice President J.D. Vance expressing scepticism about progress in diplomatic talks with Iran.

Precious metals rebounded as well. Gold rose 1.8% to $4,995 an ounce, while silver climbed 4.9% to $77.10.

In contrast, Bitcoin slipped to around $66,300 after briefly trading above $68,000 overnight. The U.S. dollar index strengthened 0.6% to 97.70.

Market Outlook

Looking ahead, markets are likely to remain highly data-dependent. Upcoming inflation readings — particularly the PCE index — could significantly influence expectations for interest rate policy in the coming months.

Stronger inflation data could push bond yields higher, support the dollar, and pressure growth-oriented equities, especially technology stocks. Conversely, signs of cooling inflation may revive expectations of rate cuts, potentially supporting equities, commodities, and broader risk appetite.

As always, traders will be watching both macro data and central bank signals closely, as policy expectations remain the dominant driver of market sentiment.

U.S. equities finished Wednesday in positive territory, although gains faded toward the close as investors adopted a more cautious stance following the release of minutes from the Federal Reserve’s January meeting. The document revealed notable differences among policymakers regarding the future direction of interest rates, adding a layer of uncertainty to markets already sensitive to inflation and labour data.

The tech-heavy Nasdaq Composite led the advance with a 0.8% gain, while the S&P 500 rose 0.6% and the Dow Jones Industrial Average added roughly 0.3%. The session followed a volatile Tuesday, when renewed concerns about technology stock valuations triggered sharp intraday swings.

Fed minutes showed policymakers divided on next steps. Some officials indicated they remain open to further rate hikes if inflation proves persistent, while others favour eventual easing to support economic activity. The committee ultimately voted in January to hold rates steady for the first time since July.

Recent economic data has complicated the outlook. Stronger-than-expected inflation and jobs figures last week reduced expectations for near-term rate cuts, while investors now await Friday’s release of the personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge.

Technology stocks regained some momentum. Nvidia rose 1.6% after Meta announced plans to purchase millions of chips to expand its data centre infrastructure. Other AI-linked semiconductor firms, including Micron Technology and Western Digital, also advanced, while Meta itself gained 0.6%.

Among the other major tech names, Amazon climbed about 2% despite Berkshire Hathaway reducing its stake. Apple, Alphabet, Microsoft, and Tesla posted modest gains.

Corporate earnings news produced mixed reactions. Palo Alto Networks dropped 7% after issuing weaker-than-expected guidance, while Cadence Design Systems surged 8% and Analog Devices rose 3% after beating revenue and profit forecasts.

In fixed income markets, the yield on the benchmark 10-year U.S. Treasury note edged up to 4.08% from 4.06%, underscoring continued sensitivity to shifting rate expectations.

Energy markets were stronger, with West Texas Intermediate crude jumping about 4.5% to $65.10 a barrel following comments from U.S. Vice President J.D. Vance expressing scepticism about progress in diplomatic talks with Iran.

Precious metals rebounded as well. Gold rose 1.8% to $4,995 an ounce, while silver climbed 4.9% to $77.10.

In contrast, Bitcoin slipped to around $66,300 after briefly trading above $68,000 overnight. The U.S. dollar index strengthened 0.6% to 97.70.

Market Outlook

Looking ahead, markets are likely to remain highly data-dependent. Upcoming inflation readings — particularly the PCE index — could significantly influence expectations for interest rate policy in the coming months.

Stronger inflation data could push bond yields higher, support the dollar, and pressure growth-oriented equities, especially technology stocks. Conversely, signs of cooling inflation may revive expectations of rate cuts, potentially supporting equities, commodities, and broader risk appetite.

As always, traders will be watching both macro data and central bank signals closely, as policy expectations remain the dominant driver of market sentiment.

Major U.S. stock indexes trimmed early losses and ended Tuesday’s session slightly higher at the start of a shortened trading week, as investors adopted a cautious stance ahead of upcoming inflation and GDP data releases.

The Nasdaq Composite rose 0.1% after falling more than 1% earlier in the session, while the S&P 500 and Dow Jones Industrial Average also closed about 0.1% higher.

This modest recovery follows the worst week for equities since the start of 2026, with the Nasdaq losing more than 2% amid renewed concerns about the impact of artificial intelligence developments on software and IT services companies. These concerns overshadowed recent lower-than-expected inflation readings and a stronger-than-anticipated January employment report.

Technology stocks delivered mixed results. Apple gained 3.2%, supported by reports of intensified efforts to develop AI-enabled wearable devices. Nvidia and Amazon also recovered, each rising close to 1%.

However, Tesla, Alphabet, and Microsoft declined more than 1%, while Meta posted a modest loss, reflecting continued caution around the broader technology sector.

In media stocks, Paramount Skydance rose around 5% after Warner Bros. reportedly resumed acquisition discussions with Discovery, potentially reshaping competition in the streaming sector following Netflix’s previously approved bid. Warner Bros. shares gained nearly 3%, while Netflix edged up 0.2%.

Investors are now focused on the upcoming release of the Personal Consumption Expenditures (PCE) index — the Federal Reserve’s preferred inflation gauge — due Friday. Fourth-quarter GDP data will also be closely watched as both indicators could shape expectations for monetary policy at upcoming Federal Reserve meetings.

In the bond market, the yield on the 10-year U.S. Treasury note rose slightly to 4.07% from 4.05% at Friday’s close, influencing borrowing costs across consumer credit markets, including mortgages.

Precious metals remained volatile, with gold falling about 3% to $4,895 per ounce and silver dropping roughly 6% to $73.50. West Texas Intermediate crude futures declined 0.9% to around $62.35 per barrel.

In cryptocurrency markets, Bitcoin traded near $67,700 after briefly surpassing $70,000 over the weekend. Meanwhile, the U.S. dollar index strengthened slightly, rising 0.2% to 97.10.

Market Outlook

Near-term market volatility is likely to remain contained as investors reduce risk exposure ahead of key macroeconomic data releases. A higher-than-expected PCE inflation reading could reinforce expectations that interest rates will remain elevated for longer, potentially pressuring growth and technology stocks.

Conversely, softer inflation data may revive hopes of an eventual rate-cut cycle, supporting equities and broader risk assets.

US stocks closed a turbulent week with mixed performance after fresh inflation data showed prices rising more slowly than expected last month. The figures provided some short-term reassurance to markets following a period of sharp volatility.

The S&P 500 and Dow Jones Industrial Average each edged up 0.1% at the close, while the tech-heavy Nasdaq Composite slipped 0.2%.

This followed a difficult Thursday session, when renewed concerns about the artificial intelligence sector triggered another sell-off in software stocks — part of what media outlets have dubbed the recent “software crisis.”

On a weekly basis, all three major indices recorded their largest declines since the start of the year. The Dow fell 1.2%, despite hitting record highs earlier in the week. The S&P 500 declined 1.4%, while the Nasdaq dropped 2.1%, marking its fifth consecutive weekly loss.

Inflation data provided partial support for markets. Annual inflation slowed to 2.4% in January — the lowest level since May and below economists’ expectations. Core inflation, which excludes food and energy, eased to 2.5%, its lowest reading since March 2021.

These figures raised hopes for potential monetary policy easing. However, strong labor market data — showing job creation more than double forecasts — reduced expectations for near-term interest rate cuts.

Treasury yields declined after the inflation release, with the 10-year yield falling to 4.05% from 4.11% in the previous session. This helped support risk appetite in certain sectors.

Corporate movements were notable. Coinbase shares surged 17% despite declining revenue amid lower cryptocurrency prices. Applied Materials rose 8% after beating earnings expectations, supported by strong demand for AI chips, while Arista Networks gained 5% on continued growth in AI-driven data center demand.

Conversely, Pinterest fell 17% after disappointing results, and DraftKings dropped 14% following weak revenue forecasts.

Major technology stocks remained under pressure. Nvidia and Apple each declined more than 2%, while Alphabet and Meta slipped over 1%. Microsoft and Amazon posted modest losses, while Tesla was the only member of the “Big Seven” to close slightly higher.

In commodities markets, gold recovered earlier losses to trade near $5,050 an ounce, while West Texas Intermediate crude settled around $62.85 per barrel. Bitcoin rebounded from roughly $65,000 to about $68,800, and the US dollar index edged down 0.1% to 96.85.

Market Outlook

Near-term market direction is likely to remain tied to incoming macroeconomic data, particularly inflation and labor market reports ahead of the next Federal Reserve meeting.

Continued easing in inflation could revive expectations for interest rate cuts, potentially supporting equities and gold while weighing on the dollar. However, persistent labor market strength and rising wages could push bond yields higher again, potentially triggering renewed volatility — especially in technology, AI, and cryptocurrency-related stocks.

U.S. stock markets closed sharply lower on Thursday as investors trimmed exposure to technology stocks amid a wave of economic data releases and corporate earnings. The tech-heavy Nasdaq dropped 2%, the S&P 500 fell about 1.6%, and the Dow Jones Industrial Average declined 1.3%, shedding roughly 670 points. This marked the Dow’s second consecutive decline following a three-session rally that had pushed it to record highs.

Large-cap tech stocks came under broad selling pressure, with Apple leading losses at around 5%. The information technology sector was the weakest performer within the S&P 500, down roughly 2.7%. Still, some storage-technology companies bucked the trend: Seagate rose about 6%, SanDisk gained roughly 5%, and Western Digital climbed close to 4% on sustained demand for data storage solutions.

Economic data added to market caution. Weekly jobless claims came in at 227,000 — slightly above expectations but below the prior week’s figure. Existing home sales fell sharply to 3.91 million units, signalling ongoing weakness in the housing market. Investors are now focused on upcoming inflation figures, which could shape expectations for future Federal Reserve interest-rate policy.

Bond markets reflected a defensive tone, with the 10-year Treasury yield slipping below 4.11%. Commodities weakened, with gold down around 3%, silver dropping roughly 10%, and crude oil falling nearly 3%. Bitcoin traded near $65,500 after earlier volatility, while the U.S. dollar index edged higher.

Outlook

Markets are likely to remain cautious ahead of inflation data. A hotter-than-expected reading could keep pressure on tech stocks and reinforce expectations for higher interest rates, while softer inflation could trigger a relief rally and improve overall risk sentiment.

US stock indexes ended Wednesday’s session marginally lower as investors assessed stronger-than-expected labour market data alongside a wave of corporate earnings releases.

Figures from the Bureau of Labor Statistics showed the US economy added 130,000 jobs in January, comfortably beating expectations of around 55,000. The unemployment rate also edged down to 4.3% from 4.4% in December, defying forecasts that it would remain unchanged.

While the resilient labour market underscores economic strength, it has reinforced expectations that interest rates may stay elevated for longer. Reflecting this, the yield on 10-year US Treasury bonds rose to about 4.18%, up from below 4.15% in the prior session. According to CME Group’s FedWatch tool, markets now price a roughly 94% probability that the Federal Reserve will hold rates steady at its March meeting, compared with around 80% previously.

In equity markets, the Nasdaq slipped 0.2%, the Dow Jones Industrial Average eased 0.1%, and the S&P 500 closed broadly flat after the Dow had posted record highs in the previous three sessions. Technology stocks showed mixed performance: Nvidia and Tesla edged slightly higher, while Alphabet was among the weakest major tech names, falling 2.4%.

Individual stock movements were pronounced. Mattel dropped 25%, Lyft declined 17%, Robinhood fell 9%, and Humana lost over 3%. On the upside, Hinge Health surged 17%, Cloudflare and T-Mobile gained about 5% each, and Ford added nearly 2%.

In other markets, Bitcoin retreated to roughly $67,600 after briefly approaching $69,200 overnight. The US dollar index rose to 96.86. Gold climbed 1.6% to around $5,110 an ounce, silver jumped 4.5% above $84, and West Texas Intermediate crude rose 1.5% to near $65 per barrel.

Market Outlook

Investors are expected to remain focused on bond yield movements, which continue to drive short-term equity sentiment. Rising yields could weigh on growth and technology stocks, while financial and defensive sectors may benefit from a prolonged higher-rate environment.

Corporate earnings will remain a key catalyst, particularly any signals on profit margins or forward guidance. Continued economic resilience could reinforce the view that the Federal Reserve is in no rush to cut rates, potentially keeping markets range-bound and volatile as new economic data and Fed commentary emerge.

The Dow Jones Industrial Average posted its third consecutive record close on Tuesday, standing out as the only major U.S. index to finish higher while broader markets saw some profit-taking. The tech-heavy Nasdaq Composite fell 0.6%, while the S&P 500 declined 0.3%, ending a brief two-session rally.

The Dow edged up about 0.1% and also touched a fresh intraday record. Falling bond yields provided some support, with the 10-year U.S. Treasury yield dropping below 4.15% from around 4.21% the previous session. This move followed weaker-than-expected retail sales data, which showed flat December spending compared with forecasts for modest growth — a signal that consumer momentum may be softening.

Stock-specific moves were notable. Spotify surged 15% after earnings, while Credo Technology Group rose roughly 9%. Hasbro, ON Semiconductor, and AstraZeneca also posted gains. On the downside, Upwork tumbled 19%, while Coca-Cola and CVS Health slipped modestly.

Financial stocks faced pressure amid growing discussion around the impact of artificial intelligence on traditional wealth management and financial services models. Meanwhile, some technology leaders showed mixed performance: Oracle continued to gain, but Microsoft and Nvidia edged lower after recent strong runs.

Bitcoin traded near $69,000 after pulling back from overnight highs, while the U.S. dollar index remained largely steady. Commodities weakened slightly, with gold, silver, and crude oil all posting modest declines.

Looking ahead, markets are expected to remain cautiously volatile as investors watch upcoming economic data for clues on Federal Reserve policy. Sector divergence could persist — declining bond yields may support the Dow, while high valuations and evolving AI developments could keep pressure on certain technology and financial stocks. Precious metals may hold relatively steady unless economic data or currency movements trigger fresh volatility.

Major U.S. stock indices closed higher on Monday, extending the rebound seen late last week as technology stocks once again provided momentum. The S&P 500 and Nasdaq posted solid gains, while the Dow Jones Industrial Average briefly hit fresh record highs before finishing with only modest upside.

The tech-heavy Nasdaq climbed about 0.9%, supported by strength in large-cap technology names, while the S&P 500 rose roughly 0.5%. The Dow Jones added less than 0.1% despite touching new all-time highs during the session — a sign that broader market momentum remains somewhat uneven.

Markets are still stabilizing after last Thursday’s sharp selloff, which was followed by a strong rebound on Friday when all three major indices surged more than 2%. The Dow in particular jumped over 1,200 points, pushing past the psychological 50,000 mark and snapping a three-week losing streak. However, the Nasdaq had still been under pressure in recent weeks, and the S&P 500 has also shown intermittent weakness.

Among individual stocks, AppLovin and Oracle led S&P 500 gains, rising about 13% and 10% respectively. Within the Dow, Microsoft and Nvidia helped drive performance, climbing roughly 3% and 2.5%. Most mega-cap tech firms advanced, although Apple and Amazon edged lower.

In healthcare, Novo Nordisk shares rose around 3.5% in U.S. trading, while Hims & Hers Health plunged after suspending its generic weight-loss drug initiative amid legal action from Novo Nordisk.

Elsewhere, Kroger shares climbed after appointing former Walmart executive Greg Foran as CEO, while semiconductor firm STMicroelectronics rallied following an expanded partnership with Amazon Web Services.

Bitcoin traded near $70,800 with limited daily movement after sharp volatility late last week. Gold and silver also rebounded, supported by a softer dollar and declining Treasury yields, with the 10-year yield easing to around 4.20%.

Looking ahead, investors remain focused on inflation data, bond yields, and developments in artificial intelligence-driven tech stocks. Continued strength in major tech names could support further gains in the S&P 500 and Nasdaq, while gold and silver may stay supported if yields soften. Crypto markets, meanwhile, are likely to remain volatile.

Markets across the region edged up on Monday as Takaichi’s Liberal Democratic Party (LDP) delivered a decisive victory, giving investors greater political clarity. Japan’s Nikkei 225 climbed roughly 4%, Hong Kong’s Hang Seng rose 1.76%, South Korea’s Kospi gained 4.10%, and China’s SSE Composite added about 1.41%.

European markets presented a mixed picture. The STOXX Europe 600 traded marginally higher around midday CET, while France’s CAC 40 and the UK’s FTSE 100 declined. Germany’s DAX rose 0.18%, and Spain’s IBEX 35 advanced 0.44%. Attention now shifts to the New York open, with US futures trending lower.

Precious metals also strengthened. Gold rose approximately 0.72%, moving back above $5,000, while silver gained more than 2% to just under $80 per ounce.

The Japanese yen strengthened following the election outcome, snapping six consecutive days of losses. Takaichi pledged to continue “responsible and proactive fiscal policies,” although uncertainty remains over whether her administration will favour a weaker currency.

Japan’s first female prime minister has regained substantial support for the LDP after recent setbacks linked to inflation and corruption concerns. Takaichi also signalled plans to suspend sales tax on food for two years — a move that could reduce government revenue and has already contributed to volatility in Japanese bond markets.

Finance Minister Satsuki Katayama downplayed debt concerns and recent currency weakness, suggesting foreign exchange reserves could help fund national spending, though such reserves are typically reserved for currency intervention. She also emphasised close coordination between the government and the Bank of Japan, which appears to have eased market anxiety for now.

What Does This Mean for Me?

Investors are now watching several key US economic releases delayed by the recent partial government shutdown. The January jobs report is due Wednesday, with expectations for roughly 60,000 new jobs, while Friday’s CPI data is forecast to show inflation cooling to around 2.5%.

Several Federal Reserve officials, including Christopher Waller and Stephen Miran, are scheduled to speak this week, with markets parsing their comments for policy signals. Attention is also on the upcoming leadership transition at the Fed, as Kevin Warsh — nominated by President Donald Trump — is expected to succeed Jerome Powell as Chair in May 2026 pending Senate confirmation. Warsh has historically advocated lower interest rates alongside balance-sheet reduction, positions that markets are watching closely.