Daily Updates

US and European equities slumped overnight as the Middle East situation deteriorated further and oil prices hit two-month highs, lifting inflation expectations and bond yields. However, tech was the main drag on US markets, as traders continue to question whether future earnings justify current valuations and heavy AI data centre spending.

Wall Street saw slight declines on Wednesday night, while oil prices and government bond yields picked up, as US President Donald Trump warned that Iranian infrastructure could be targeted if attacks on vessels in the Strait of Hormuz continue.

US equities had their strongest day since late June, with the rally led by a rebound in tech stocks as bargain hunters continued to buy semiconductor shares following last week’s heavy selling.

US equities climbed early in the overnight session, but momentum faded over the course of the day to end lower as the conflict in the Middle East continued to weigh on sentiment. The decline saw the S&P 500 end in the red for the third day in a row, pushing the US benchmark to a three-week low. However, losses were limited by a stabilisation in semiconductor shares following recent heavy falls.

The sell-off on Wall Street deepened on Friday, as attacks continued across the Middle East and concerns mounted over the sustainability of the artificial intelligence boom in the US following an alleged competitive breakthrough in China.

The S&P 500 retreated overnight, dragged down by information technology and communication services amid fresh concerns about overvaluation. Investors are also awaiting US President Donald Trump’s speech later this morning, although there is speculation that the speech may not concern international affairs.