NEW YORK:Global markets came under dual pressure from mounting concerns over the artificial intelligence (AI) sector and a continued rise in...
NEW YORK:Global markets came under dual pressure from mounting concerns over the artificial intelligence (AI) sector and a continued rise in oil prices that is increasing inflation risks, The Wall Street Journal (WSJ) reported.
Technology stocks declined worldwide, while Nasdaq 100 futures fell more than 1.5%, the newspaper noted. Nvidia shares were down around 3% in premarket trading, while CoreWeave lost nearly 8%. According to the newspaper, pressure intensified after the heads of three major artificial intelligence companies called for slowing the technology's development, raising questions about future demand for AI services and the components needed to support them, including memory chips.
At the same time, Brent crude rose to nearly $110 per barrel amid growing instability in the Middle East and threats to supplies. Saudi Arabia had earlier announced the closure of the East-West oil pipeline, which had been used to bypass the Strait of Hormuz, following a series of drone attacks. Hopes for diplomatic progress also faded after a planned Monday meeting between Gulf states and Iran was postponed, the WSJ wrote.
Against this backdrop, the yield on 10-year US Treasury bonds approached 5%. On Monday, the yield rose above 4.98%.
The newspaper stressed that the key event of the week will be the US Federal Reserve's interest rate decision, expected on Wednesday. Investors are expecting a rate hike, while the Bank of Japan is expected to take a similar step in the coming days. Concerns over accelerating inflation have already triggered a broad selloff in global bond markets in recent weeks.
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