Global financial markets saw another extremely volatile session yesterday as AI-sector concerns weighed heavily on US technology stocks. The Nasdaq fell 2.60%, its largest one-day decline since June, while the S&P 500 also lost ground and the Dow remained broadly steady. Treasury yields tumbled sharply across the curve as investors reassessed the outlook for growth and Federal Reserve policy, while the Dollar Index edged only marginally lower. Oil surged on fresh Middle East supply concerns, whereas gold plunged through key technical support despite the steep decline in yields. Flash PMIs, UK Retail Sales and revised University of Michigan data are in focus today.
📊 Equities
Global financial markets experienced another extremely volatile trading session yesterday, with US technology stocks taking a significant hit as concerns surrounding the AI sector once again weighed heavily on investor sentiment. The Nasdaq led the declines, plunging 2.60% in its biggest one-day fall since June, while the S&P 500 also suffered substantial losses. The Dow managed to hold relatively steady, highlighting the sharp divergence between technology stocks and the broader market.
🛢️ Oil
Oil markets surged again as escalating geopolitical tensions in the Middle East raised fresh concerns over global energy supplies. Further Houthi attacks on Saudi Arabia pushed Brent crude to fresh five-month highs, with traders increasingly concerned that continued hostilities could lead to further supply disruptions. Brent rose 3.73% to $112.88, while WTI gained 2.02% to $99.11.
🥇 Gold
Gold moved sharply in the opposite direction, crashing through key technical support levels to trade at prices not seen since early August despite the substantial decline in US Treasury yields. The precious metal fell 2.81% to $4,023.98.
💵 FX & Bonds
US Treasury markets saw equally dramatic moves, with yields tumbling across the curve as investors reassessed the outlook for growth and Federal Reserve monetary policy. The benchmark ten-year yield fell 16.6 basis points to 4.953%, its biggest one-day decline in more than three years, while the policy-sensitive two-year yield also dropped sharply, falling 16.7 basis points to 4.639%. Currency markets were equally lively, with significant moves across the major pairs, although the Dollar Index ultimately finished only marginally lower, down 0.08% to 101.61.
| Market | Change | Close |
|---|---|---|
| Dow | +0.02% | 52,867 |
| S&P 500 | -1.21% | 7,663 |
| Nasdaq | -2.60% | 26,008 |
| USD | -0.08% | 101.61 |
| US Treasury – 2 Year | -16.7 bps | 4.639% |
| US Treasury – 10 Year | -16.6 bps | 4.953% |
| Oil – Brent | +3.73% | $112.88 |
| Oil – WTI | +2.02% | $99.11 |
| Gold | -2.81% | $4,023.98 |
📌 Today’s Focus (AEST)
The economic calendar is busy today, with a raft of Flash Manufacturing and Services PMI releases due across Europe, the UK and the US. UK Retail Sales will also attract attention early in the European session. However, geopolitical developments are expected to remain firmly in the driving seat, with traders anticipating further volatility as markets react to ongoing developments in the Middle East.
🔹 European Session – 5.00 pm – UK – Retail Sales Data
🔹 European Session – 6.15 pm – France – Flash Manufacturing and Services PMI data
🔹 European Session – 6.30 pm – Germany – Flash Manufacturing and Services PMI data
🔹 European Session – 7.30 pm – UK – Flash Manufacturing and Services PMI data
🔹 US Session – 12.45 am – US – Flash Manufacturing and Services PMI data
🔹 US Session – 1.00 am – US – Revised University of Michigan Consumer Sentiment data
🔹 US Session – 1.00 am – US – Revised University of Michigan Inflation Expectations data