Stocks Fall as AI Rally Faces Fresh Scrutiny: Markets Wrap
(Bloomberg) — Stocks fell while caution prevailed across most asset classes as traders considered whether earnings justified fresh advances in the artificial intelligence trade and uncertainty swirled around the Middle East.
S&P 500 futures retreated 0.2%, while those for the Nasdaq 100 dropped 0.5%. A strong earnings beat and raised sales outlook from Taiwan Semiconductor Manufacturing Co. failed to trigger fresh gains for the sector that has fueled most of this year’s stock market gains. Europe’s Stoxx 600 was down 0.5%.
Brent crude held above $84 a barrel after the US struck Iran for a fifth straight day and hit a sanctioned oil tanker near the country’s main export terminal. Treasuries edged lower, with the 10-year yield rising two basis point to 4.56%. The dollar barely budged, while gold headed for its first day of losses in three.
Chipmakers’ leading role in this year’s equity advances is increasingly coming under strain as traders grapple with lofty stock valuations and whether AI hyperscalers are building more capacity than they will need. Investors are also looking for opportunities to rotate to other sectors within the AI trade that will benefit from the global buildout at more attractive prices.
“There’s been a lot of concentration in the market and that means there’s little room for error,” said Richard Flynn, managing director at Charles Schwab UK. “Global geopolitical risk is elevated and so there’s a relative tone of caution fundamentally looking at the macro outlook.”
An outlier to Thursday’s subdued trading was in Seoul, where sharp volatility in its chipmaking heavyweights drove another steep decline in the Kospi Index.
South Korean authorities announced a temporary halt to new listings of single-stock leveraged exchange-traded funds. Many market participants have blamed the products for intensifying swings because of the daily rebalancing flows required to maintain their promised return ratios.
Corporate News:
Taiwan Semiconductor Manufacturing Co. raised its spending and revenue projections for the year, reflecting its confidence that torrid growth in demand for chips and data centers will extend into 2027. Uber Technologies Inc. has agreed to buy Delivery Hero SE in a deal that values the German food-delivery company at $14.8 billion. Syngenta Group’s planned $5 billion Hong Kong initial public offering is facing delays as the seed and pesticide company waits for better conditions in the agriculture sector, according to people familiar with the matter. ABB Ltd. agreed to buy British industrial components company Rotork Plc for an enterprise value of around $5.5 billion to expand its electrification and automation businesses. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.5% as of 9:08 a.m. London time S&P 500 futures fell 0.2% Nasdaq 100 futures fell 0.5% Futures on the Dow Jones Industrial Average fell 0.1% The MSCI Asia Pacific Index fell 1.4% The MSCI Emerging Markets Index fell 1.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1467 The Japanese yen was little changed at 162.11 per dollar The offshore yuan was little changed at 6.7688 per dollar The British pound fell 0.1% to $1.3525 Cryptocurrencies
Bitcoin fell 1.3% to $64,092.53 Ether fell 0.9% to $1,906.07 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.56% Germany’s 10-year yield advanced one basis point to 3.13% Britain’s 10-year yield advanced three basis points to 4.96% Commodities
Brent crude fell 0.7% to $84.35 a barrel Spot gold fell 0.8% to $4,029.65 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling.
©2026 Bloomberg L.P.
