US equities ended Friday sharply lower as renewed concern over AI expenditure deepened the technology sell-off, sending the Nasdaq down 2.86%. Treasury yields edged lower while the dollar regained modest ground, as geopolitical uncertainty continued to support the greenback. Oil surged after reports that a tanker had been struck in the Strait of Hormuz, heightening concerns over energy supply disruptions. Gold plunged 3.62% below $4,000, while today’s calendar is quiet apart from US ISM Manufacturing PMI.
📊 Equities
US stock markets finished the trading week firmly in the red on Friday, with technology stocks once again leading the declines as growing concerns over AI expenditure continued to weigh heavily on investor sentiment. The Nasdaq took the biggest hit, plunging 2.86% to 25,437, while the S&P 500 dropped 1.82% to 7,580 and the Dow Jones lost 1.09% to 51,770.
🛢️ Oil
Oil prices surged higher again as escalating hostilities in the Middle East raised further concerns over global energy supplies. Reports that a tanker had been struck in the Strait of Hormuz marked the latest escalation in the conflict, adding to fears of further disruption to one of the world’s most important shipping routes. Brent crude jumped 2.37% to $113.43, while WTI gained 2.08% to $104.12. With tensions showing little sign of easing, traders are bracing for further volatility in energy markets in the coming sessions.
🥇 Gold
Gold experienced another brutal trading session, plunging 3.62% to close at $3,875.02 as selling pressure continued to dominate the precious metal. The latest move saw gold fall further below the key $4,000 level, with traders now watching closely to see whether buyers can return at lower levels or whether the recent sell-off has further to run.
💵 FX & Bonds
US Treasury markets experienced a relatively quiet session despite the sharp moves in equities, with yields edging marginally lower across the curve. The benchmark 10-year yield slipped 0.8 basis points to 4.929%, while the policy-sensitive 2-year yield fell 1.0 basis point to 4.588%. The US dollar managed to regain some ground against the major currencies, with the Dollar Index climbing 0.11% to 101.96 as ongoing geopolitical uncertainty continued to provide some support for the greenback.
| Market | Change | Close |
|---|---|---|
| Dow | -1.09% | 51,770 |
| S&P 500 | -1.82% | 7,580 |
| Nasdaq | -2.86% | 25,437 |
| USD | +0.11% | 101.96 |
| US Treasury – 2 Year | -1.0 bps | 4.588% |
| US Treasury – 10 Year | -0.8 bps | 4.929% |
| Oil – Brent | +2.37% | $113.43 |
| Oil – WTI | +2.08% | $104.12 |
| Gold | -3.62% | $3,875.02 |
📌 Today’s Focus (AEDT)
It is a relatively quiet start to the trading week on the economic calendar, with US ISM Manufacturing PMI the main scheduled release. However, with geopolitical tensions continuing to escalate in the Middle East and concerns surrounding the technology sector showing little sign of abating, traders are expecting another volatile day across global markets. Oil prices and any fresh developments around the Strait of Hormuz are likely to remain firmly in focus as the trading sessions progress.
🔹 US Session – 2.00 am – US – ISM Manufacturing PMI