World stocks dip as chips slide, bonds rise
SPY•World stocks dipped as competition concerns hit chipmakers, while investors moved into government bonds. The MSCI world index fell 0.14%, South Korea’s KOSPI sank more than 5%, and the 10-year US Treasury yield eased to 5.193%.
1. Chip stocks retreat
World stocks dipped on Tuesday as renewed concerns about AI competition weighed on chipmakers, particularly in Asia. Reports of progress by Chinese memory chipmaker CXMT fueled concerns about competition, while Broadcom CEO Hock Tan likened some flows into the broader AI sector to “casino gambling.”
2. Regional market moves
The MSCI world index fell 0.14%, and the broadest index of Asia-Pacific shares outside Japan dropped more than 2%. South Korea’s KOSPI sank more than 5%; Samsung fell 7.4% and SK Hynix dropped 10%. European stocks rose, with the STOXX 600 up 0.5%.
3. Bonds and earnings
The 10-year US Treasury yield dipped to 5.193%, retreating from last week’s 24-year high of 5.364%. Investors awaited US inflation data and earnings from JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo. Brent crude futures fell 1.7% to $104.78 per barrel.
