International markets update:
Global markets experienced a notable downturn, primarily driven by a significant retreat in the AI sector and broader tech stocks. This sentiment was echoed across key Asian indices and impacted major U.S. tech giants.
- Asian tech stocks experienced a sharp decline, with Samsung and SK Hynix plunging, leading South Korea’s Kospi down 10% and triggering circuit breakers. Contagion spread to the Nikkei, driven by major tech names.
- Nvidia faced selling pressure, dropping over 5%, after reports of talks with OpenAI for a significant funding backstop. This shift allowed Apple to reclaim its position as the world’s most valuable company.
- Luxury giant LVMH reported robust demand from U.S. consumers, offsetting slower sales growth in Europe and China. Watches and jewelry emerged as the fastest-growing segments, indicating resilience in certain luxury categories.
- Oil prices extended losses amid hopes for de-escalation in the U.S.-Iran situation. Traders are closely watching for Federal Reserve Chairman Kevin Warsh’s upcoming policy meeting for potential comments on energy market impacts.
- SpaceX’s market capitalization continued its significant decline, erasing over $1.2 trillion since June highs. This loss is equivalent to the entire market value of Elon Musk’s other company, Tesla, which also fell to near one-year lows.
Stock Market News summarised for the Wall Street Investors Club community.