Stocks tumbled as mounting doubts over returns from billions of dollars of artificial-intelligence spending triggered another selloff in chipmakers from Wall Street to Asia. Bonds gained as oil retreated. MSCI’s Asia Pacific equity gauge dropped as much as 3.6% to the lowest level since May, putting it on track for a technical correction. South Korea’s Kospi Index led regional losses, tumbling 10% as the chip rout deepened. SK Hynix Inc. and Samsung Electronics Co. both slid more than 11% amid concerns over circular funding and rising competition from China. The Asian losses followed a selloff in chipmakers on Wall Street, which sent a gauge of semiconductors down for a third day. Technology stocks were the main losers across the region, sending benchmarks in Japan and Taiwan down more than 3%. Nasdaq 100 futures dropped 0.5%, pointing to further weakness in technology companies. Elsewhere, Brent extended Monday’s biggest decline in more than three months, falling another 1.4% to about $87.10 a barrel, as the US paused daily strikes against Iran and President Donald Trump said there’s a “good chance” of an Iran deal. Treasuries gained for a second day as inflation fears eased. The US 10-year note yield declined two basis points to 4.63%.
The selloff in chip stocks has raised the stakes ahead of a packed week of risk events, including policy decisions from the Federal Reserve, Bank of Japan and Bank of England, as well as earnings from megacap tech companies. Markets are looking for evidence that the biggest spenders on AI can justify the billions of dollars they have poured into the technology. The chip sector losses point to deepening concerns over crowded equity positioning and rising corporate debt levels as the AI buildout progresses. Nvidia Corp.’s fresh round of deals worth more than $750 billion has triggered worries over artificially inflated demand for AI. New York Life Investment Management Global Market Strategist Julia Hermann discusses what to expect from upcoming earnings in the tech sector and what it means for hyperscalers and chipmakers. A report from The Information that a Chinese state-backed company has begun mass producing immersion deep ultraviolet lithography machines has been another new cause of concern. Shares of Japanese chip-equipment makers including Nikon Corp. and Tokyo Electron Ltd. both slid more than 9%. AI spending is under intense scrutiny after Alphabet Inc.’s decision last week to raise its capital spending forecast to as much as $205 billion this year reignited concerns over fiscal discipline in the race to dominate the technology. Microsoft Corp., Meta Platforms Inc., Apple Inc. and Amazon.com Inc. are among the megacaps reporting this week, while SK Hynix and Samsung will kick off earnings in Asia. Elsewhere, the policy announcement by the Fed on Wednesday is in focus. Traders continued to see a roughly one-in-three chance of a rate hike. Citadel Securities expects the Fed to raise rates this week — a surprise move strengthening Chairman Kevin Warsh’s credibility in the battle with inflation. A quarter-point increase on Wednesday would reinforce Warsh’s repeated pledge to restore price stability while showing policymakers no longer rely on signaling every policy move well in advance, Frank Flight, the firm’s head of macro strategy, wrote in a note. US After Hours OPK +8.1%, CLS +7.3%, APLD +5.5%, and CDNS +4.5% higher on earnings; NE -6.7%, UHS -4.1%, BRO -3.4% lower on earnings
Nikkei -3.86% Hang Seng -0.11% CSI -2.25% Kospi -9.98% Shanghai -0.98% Shenzen -2.33%
Eur$ 1.1363 CNH 6.7683 CNY 6.7683 JPY 163.76 GBP 1.3290 CHF 0.8195 RUB 77.9617 TRY 47.3789 WTI$ 81.61 -1.14% Gold 4,042.21 -0.99% BTC 63,408 -2.32% ETH 1,881 -3.33%
S&P -0.25% Nasdaq -0.80% EuroStoxx -0.11% FTSE -0.23% Dax +0.07% SMI
Macro :
- Chip Rout Deepens on China Competition, Circular Funding Fears
- Oil Startup Backed by Ex-Goldman Commodity Chief Currie to IPO
- Oil Startup Backed by Ex-Goldman Commodity Chief Currie to IPO
- Trump Sees ‘Good Chance’ of Iran Deal After Pause in Strikes
- France and Spain Plan Economic Support as Major Fires Still Burn
- China Draws Lines on US Tariffs, AI Ahead of Xi-Trump Summit
- DeepSeek Founder’s Hedge Funds Are Among Big Winners of CXMT IPO
Keep an eye on :
Keep an eye on :
- AI FP : Air Liquide 1H Recurring Operating Income Meets Estimates
- Anthropiv IPO : Anthropic Says Never Sought Ban on Open-Weights AI Models
- ASML NA : ASML Slides on Report of China Starting DUV Tool Production
- BARC LN : *BARCLAYS 2Q INVESTMENT BANK REV. GBP3.96B, EST. GBP3.66B
- BFIT NA : Basic-Fit Boosts FY Adjusted Ebitda Forecast
- BBVA SM : BBVA to Redeem Mortgage Covered Bonds Issued February 2022
- BEN FP : Beneteau 2Q Revenue EU282.7M Vs. EU273.5M Y/y
- BIM FP : BioMerieux 2Q Organic Sales Beat Estimates
- BT/A LN : UK’s Ofcom Proposes to Block New Openreach Commercial Offer
- BOBNN SW : Bobst 1H Sales CHF589.9M Vs. CHF667.4M Y/y
- BOY LN : Bodycote 1H Revenue Beats Estimates
- CAN LN : Canal+ Signs €980m Five-Year French Cinema Pact
- CLS CN : Celestica Surges in Postmarket on 3Q Revenue Forecast Beat
- CRDA LN : Croda 1H Pretax Profit Misses Estimates
- DNO NO : DNO 2Q North Sea Net Production Rises to 84,912 Boepd
- ECHO US : Echostar's Hughes Network Prepares to File for Bankruptcy Within Days -- WSJ
- EDP LN : EDP Renewables to Sell 80% Stake in 384 MW Portfolio for €450m
- EXENS FP : Exosens Reports 1H Revenue of EUR 253.1 Million, Compared With FactSet Consensus Estimates of EUR 253 Million (2 Est.)
- FORN SW : Forbo 1H Sales Beat Estimates
- HYQ GY : Hypoport Prelim 1H Ebit EU19.3M
- JNJ US : J&J to Pay $5.5 Billion to Settle Talc-Related Cancer Claims
- JUP LN : Jupiter Fund Management Reports 25.9m Share Secondary Placement
- LAMOR FH : Lamor 2Q Revenue Beats Estimates
- LAND LN : Land Securities Agrees £500m Metrocentre Mall Deal: Green Street
- 6181 HK ; Laopu Gold Shares Plunge After Saying It Sees 1H Profit Slowing
- LEHN SW : Lem 1Q Ebit CHF12.4M Vs. CHF4.17M Y/y
- LTMC IM : Lottomatica 1H Revenue Misses Estimates
- MC FP : LVMH ADRs Fall After 2Q Fashion & Leather Goods Sales Miss
- EMG LN : Man Group 1H Net Inflows Beats Estimates
- MBG GY : Mercedes Lowers Full-Year Group Revenue Outlook
- MRL SM : Merlin Properties 1H AFFO/Share EU0.28
- BMPS IM : Paschi, Banco BPM Advisers Working on Deal With Cash Component
- ML FP : Michelin 1H Total Segment Operating Income Meets Estimates
- MUX GY : Stellantis Agrees to Sell Car-Sharing Unit Free2move to Mutares
- NVDA US : Nvidia behind $50bn lease on Texas data centre that will use its chips
- ORA FP : Orange Boosts FY Ebitda After Leases Forecast,Orange Raises Full-Year Estimates on Spain Deal, Africa Growth
- PHIA NA : Philips 2Q Adjusted Ebita Margin Beats Estimates,*KONINKLIJKE PHILIPS ADRS RESUME TRADING, DOWN 3.3%
- RNO FP : Renault Disputes Any Wrongdoing in Diesel Vehicles Case
- RXL FP : Rexel 2Q Sales Beat Estimates, Rexel’s Guidance Boost Could Be Conservative
- RIO LN : Rio Tinto 1H Results May Show Prices Offsetting Costs: Preview
- SAF FP : Safran Boosts FY Adj. Recurring Oper Income View, Beats Est.
- SGO FP : Saint-Gobain Announces Two Acquisitions in Asia-Pacific Region
- SPM IM : Saipem 2Q Revenue Beats Estimates
- SL IM : Yachtmaker Sanlorenzo Backs Bid for Italian Sea Group Assets
- SIGN SW : SIG Group 1H Adjusted Ebitda Beats Estimates
- SIKA SW : Sika Boosts FY Sales in Local Currencies Forecast
- SGF IM : Sogefi Reports 1H Revenue of EUR 492.5 Million, Compared With FactSet Consensus Estimates of EUR 493.8 Million (2 Est.)
- SPCX US : SpaceX Starlink Routers Receive FCC Exemption From Covered List
- SUN SW : Sulzer 1H Net Income CHF138.8M Vs. CHF128.2M Y/y
- TMV GY : TeamViewer 2Q Adjusted Ebitda Beats Estimates
- TTE FP : TotalEnergies benefits from EU sanctions reprieve on Russian gas
- UBER US : Uber Shares Climb, Set to Snap Longest Losing Streak in a Year
- ULVR LN : Unilever 2Q Underlying Sales Beat Estimates
- UTG LN : Unite Group 1H EPRA NTA/Shr Misses Estimates
- VALE3 BZ : Gasparino Denies Disclosure of Vale SA Non-Public Information