Tech Rout Eases With Oil Strength Capping Relief: Markets Wrap
(Bloomberg) — A rout in the artificial intelligence trade faded, offering global stock investors some respite in the final session of a volatile week, with further gains in oil prices keeping sentiment cautious.
Nasdaq 100 futures steadied after the index suffered its worst day since June. S&P 500 contracts were down 0.2%. South Korea’s Kospi Index closed 0.3% higher, erasing losses of as much as 4.1%. The Stoxx 600 fell 0.6%, dragged lower by weaker-than-expected private sector activity in the euro area.
Treasuries gave up some of the gains from the previous session’s rush for safety, which drove the 10-year yield down by the most in more than a year. Selling pressure on French bonds eased. Oil continued to complicate the inflation outlook, with Brent crude touching its highest level since early May. Gold and the dollar were little changed.
Investors are reluctant to make big as they take stock of a tech rout fueled by doubts about the sustainability of heavy spending on the global AI buildout. Corporate bond yield premiums have surged to their widest since May 2025 just as the biggest players in the sector are committing more capital.
“Equity markets are likely to calm only once US hyperscalers can show that surging AI revenues justify the buildout,” said Wolf von Rotberg at Bank J Safra Sarasin. “The bar has certainly risen, with credit markets showing increasing signs of stress and a decreasing willingness to fund additional capex.”
Earnings continued to drive moves. In Europe, luxury firm Kering slumped 12% after sales for its Gucci brand fell more than expected. Volvo Car AB plunged 30% to a record low after reporting a loss, with its chief executive saying the market for Western-developed cars in China is disappearing fast.
US-listed chipmakers were set for some relief, with an exchange-traded fund tracking the sector rising 1% in premarket trading. Nvidia Corp. and Tesla Inc. outperformed among the Magnificent Seven, while Meta Platforms Inc. extended losses. SpaceX rose 2.3% on plans to access 80,000 cell sites for a new network.
“When you have these big corrections like the one we saw over the last few days, particularly overnight, in semiconductor stocks, I think it is a good opportunity to buy them,” Mark Matthews, the head of Asia research at Julius Baer, told Bloomberg TV. “Demand still massively exceeds supply.”
Corporate News:
SK Hynix Inc. scrapped plans for a potential $10 billion US listing of its Solidigm unit after facing strong opposition from regulators and shareholders. Citigroup Inc. received approval to launch a wholly-owned securities business in China, ending a nearly five-year journey marked by regulatory friction in both Washington and Beijing. OpenAI, which is seeking to raise around $30 billion in a fresh funding round, is now targeting a valuation of $1.25 trillion during the final stages of negotiations, according to people familiar with the matter. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.6% as of 10:53 a.m. London time S&P 500 futures fell 0.2% Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average fell 0.6% The MSCI Asia Pacific Index was little changed The MSCI Emerging Markets Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1199 The Japanese yen was little changed at 156.63 per dollar The offshore yuan was little changed at 6.6695 per dollar The British pound fell 0.2% to $1.3379 Cryptocurrencies
Bitcoin rose 0.5% to $81,549.18 Ether rose 0.7% to $2,396.98 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.98% Germany’s 10-year yield was little changed at 3.34% Britain’s 10-year yield advanced one basis point to 5.34% Commodities
Brent crude rose 1% to $114.34 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
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