Stocks erase losses as oil tumbles after Trump says US will end $4 billion funding to Israel
SPY•Stocks in Europe and the US turned higher after oil fell 2.9% following Trump’s statement that the US would end $4 billion in funding to Israel after this year. Asian shares fell as AI concerns weighed on technology stocks, while investors watched US midterm elections.
1. Stocks reverse course
European and US stocks moved higher on Tuesday after oil prices dropped following Trump’s statement that Washington would stop $4 billion in funding to Israel after the end of the year. The STOXX 600 rose 0.13% to 650.3 points, while S&P 500 futures added 0.14%. Brent crude fell 2.9% to $101.75 a barrel.
2. AI concerns weigh
South Korea’s KOSPI and Taiwan’s benchmark each fell 3.6% as renewed concern about AI unsettled investors. The report said the US midterm election results could shape oversight of AI and corporate regulation. Apple forecast lower gross margins for the holiday quarter, citing rising memory-chip costs, and projected services revenue growth below Wall Street expectations.
3. Rates and currencies
The dollar index was flat at 101.81, while the US 10-year Treasury yield rose 2.5 basis points to 4.9187%. The yuan weakened after China’s central bank said it would raise the foreign exchange reserve ratio. Bitcoin rose 0.5% to $77,110.83 and ether gained 1% to $2,278.10.
