Trading day: Maximum pain
SPY•Global markets fell as concerns about AI and technology weighed on equities; the Nasdaq dropped 2.6%, shedding $1 trillion in market value, while U.S. Treasury yields fell as much as 20 basis points and Brent crude rose above $112 a barrel.
1. Stocks slide on AI fears
Equities fell across global markets on Thursday as investor worries about AI and technology intensified. South Korea’s market dropped 3.5%, China’s 2% and Japan’s 2.5%; Europe had its biggest fall in three weeks. The Nasdaq fell 2.6%, its largest decline since June 5, while the Philadelphia Semiconductor Index dropped 6.7%.
2. Bonds and commodities move
Investors sought U.S. Treasuries, pushing yields down as much as 20 basis points across the curve. The French-German 10-year yield spread widened to 175 basis points, its largest since 2011. Brent crude rose as much as 4% to above $112 a barrel, its highest since May, while gold fell 2% to its lowest in more than two months.
3. China flows weaken
China’s CSI300 fell more than 20% from its June 22 closing peak. Foreign investment flows into China fell 4.3% year over year in January-September to 548.8 billion yuan, while outbound non-financial direct investment totaled $101 billion, the commerce ministry said.
