Daily Updates

Friday was another risk-off session for US equities, with more than 70% of shares in the S&P 500 declining. US Treasury yields rose as oil prices surged and the S&P Global PMIs indicated that US businesses were raising selling prices at the fastest pace in four years.

US equities reversed course overnight, with the S&P 500 falling 1.2% in its worst session since July. Technology shares led the sell-off amid concerns about elevated capital spending on AI infrastructure following Meta’s Q3 2026 earnings report.

US equities rose for a third consecutive day, led by a rebound in technology shares, particularly semiconductor stocks. Sentiment toward AI and chipmakers was boosted by stronger-than-expected Q3 earnings from Space X, released after Tuesday’s close, with its Super Intelligence (AI) business unit reported as its largest source of revenue.

US equities were mostly stronger overnight, although weakness in some major tech stocks limited gains in the S&P 500. The information technology subindex fell 0.3%, while communication services, which includes Alphabet and Meta, declined 0.9%.

US equities recovered some of Friday’s losses, led by technology stocks, while the Philadelphia Semiconductor Index rose for the first time in nine sessions. US Treasury yields opened the week higher following last week’s sharp decline. Oil prices rose reasserted its “sovereignty” over the Strait of Hormuz and reports of further Houthi attacks on Saudi oil facilities.

The AI-driven sell-off continued on Friday night, capping the worst trading week for the tech-heavy Nasdaq since the US tariff turmoil in April 2025. Oil futures rose by around 4% on Friday, with Brent futures approaching US$110 a barrel for the first time since mid-May, before ebbing this morning.