Tech Selloff Eases With Oil Gains 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 edged lower after the index suffered its worst day since June. S&P 500 contracts were down 0.4%. An exchange-traded fund tracking US-listed chipmakers posted modest gains in premarket trading. Meta Platforms Inc. extended losses, while SpaceX climbed as details emerged about its plans to become a wireless carrier.
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 was little changed, while the dollar nudged higher.
Investors are reluctant to make big bets 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.”
Investors’ risk-off mood is likely to continue well into November, according to Bank of America Corp.’s Michael Hartnett. Markets have yet to fully price a Democratic victory in both the House of Representatives and the Senate, which would weigh on earnings growth by bringing an end to the current low-tax, low-regulation regime, he said.
“We stay tactically risk-off until mid-Nov,” the strategist wrote in a note to clients. “Expect down-in-yields, down-in-stocks, down-in US dollar trade.”
Elsewhere, Europe’s Stoxx 600 fell 0.7%, dragged lower by weaker-than-expected private sector activity in the euro area. Kering slumped 15% after sales for its Gucci brand fell more than expected. Volvo Car AB plunged 27% to a record low after reporting a loss, with its chief executive saying the market for Western-developed cars in China is disappearing fast.
South Korea’s Kospi Index closed 0.3% higher, erasing losses of as much as 4.1%. MSCI Inc.’s benchmark for Asia was little changed, though still on track for its fourth straight week of losses.
“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:
American Express Co. shares slipped after the company said transactions on credit cards and other products fell short of analysts’ estimates. BASF SE has boosted its takeover offer for German chemicals group Evonik Industries AG to more than €11 billion ($12.3 billion), people familiar with the matter said. 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
S&P 500 futures fell 0.4% as of 8:29 a.m. New York time Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average fell 0.7% The Stoxx Europe 600 fell 0.7% The MSCI World Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1199 The British pound fell 0.2% to $1.3374 The Japanese yen was little changed at 156.68 per dollar Cryptocurrencies
Bitcoin rose 0.5% to $81,578.59 Ether rose 0.7% to $2,396.96 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 two basis points to 5.35% Commodities
West Texas Intermediate crude rose 1.8% to $101.30 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Levin Stamm and Michael Msika.
©2026 Bloomberg L.P.
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