Asian stocks skid, Wall Street and bonds aided by oil slip
SPY•Asian shares fell as concerns about AI funding weighed on tech stocks, while lower oil prices supported bonds and U.S. stock futures. Brent crude fell 1.6% to $108.06 a barrel, and S&P 500 futures rose 0.5%.
1. Oil and bonds
Oil prices slipped after U.S. President Donald Trump waived some sanctions on Russia, though he later said a final decision had not been made. Brent fell 1.6% to $108.06 a barrel and U.S. crude lost 0.7% to $100.70. Ten-year Treasury yields fell 3 basis points to 5.0645%, while S&P 500 futures rose 0.5% and Nasdaq futures gained 0.8%.
2. Asian stocks slide
Japan’s Nikkei fell 2.0% on Monday after dropping 5.4% last week, while South Korea’s market lost 1.6% after shedding more than 14% last week. An index of Asia-Pacific shares outside Japan slipped 0.3%. Concerns about the funding needs and potential returns of AI infrastructure weighed on technology stocks.
3. Earnings and currencies
Investors are watching earnings from Meta, Lam Research, Texas Instruments, Tesla and other companies this week. Meta is one of five AI hyperscalers expected to increase combined capital spending to about $1.2 trillion next year, according to Goldman Sachs. European futures declined as French political uncertainty weighed on markets, and the euro eased 0.2% to $1.1212.
