International markets update:
Markets are experiencing a significant sell-off, driven by renewed concerns over AI company spending and escalating geopolitical tensions. This has led to broad declines in U.S. equities, while bond yields eased and oil prices surged.
- U.S. markets saw a sharp sell-off, with the tech-heavy Nasdaq tumbling over 2% for its worst day since June, and the S&P 500 experiencing its largest decline since July.
- Social media giant Meta slumped nearly 7% after reporting negative free cash flow and raising its full-year capital expenditure forecast, intensifying worries over AI investment costs.
- The benchmark 10-year U.S. Treasury yield slid more than 17 basis points, falling below 5% for the first time in a month and marking its biggest one-day decline since March 2023.
- Brent crude futures gained 4% to reach $113.17 per barrel, the highest since May, as reports emerged of potential renewed strikes on Iran by U.S. and Israeli militaries.
- Nvidia CEO Jensen Huang expressed confidence that a memory surplus is unlikely by 2029, asserting that demand for high-bandwidth memory will remain strong and widely utilized.
- Pershing Square CEO Bill Ackman projects an “amazing 2027,” anticipating a booming market once current geopolitical conflicts and elevated inflation subside.
Stock Market News summarised for the Wall Street Investors Club community.