Global markets: Tech selloff relents, oil at five-month high
SPY•A global tech-share selloff eased in Asia and Europe, while Brent crude reached a five-month high of $114 a barrel. U.S. Treasury yields held below 5% after a sharp one-day decline.
1. Tech selling eases
A rout in global tech shares eased on Friday after concerns about AI funding needs hammered Wall Street. Nasdaq futures slipped 0.1% and S&P 500 futures fell 0.2%, following a 2.6% drop in the Nasdaq on Thursday; the Philadelphia semiconductor index plunged nearly 7%.
2. Oil and gas rise
Brent crude reached a five-month peak of $114 a barrel as Houthi attacks on Saudi Arabia and reports of U.S. and Israeli plans for renewed strikes on Iran lifted prices. European natural gas prices rose another 4%, leaving them almost 30% higher this month.
3. Rates and regional markets
U.S. Treasury yields returned below 5% after investors sought safety on Thursday, driving the biggest one-day yield drop since March 2023. Markets pared back expectations for rate hikes: the implied probability of a December Federal Reserve hike fell to 85%, while the chance of a December European Central Bank hike dropped to 69% from 90% earlier in the week.
