Global stocks slip as dollar heads for first weekly drop after a run of gains

what happened

According to TradingView, global stock indexes edged lower on Friday as markets steadied after a sharp selloff led by technology and chip companies. Investors remain worried about higher interest rates and the debt used to finance the AI boom. Traders increased bets on further US rate hikes after inflation data came in hotter than expected, while government bonds drew strong demand.

The S&P 500 lost 1.09%, the Nasdaq Composite fell 2.1% and the Dow Jones Industrial Average dropped 0.34%. CoreWeave shares fell 12% and lost about 25% over the week. The STOXX 600 gained 0.72% and London's FTSE 100 rose 0.38%. Indonesian equities posted their biggest drop since 1998 after MSCI said the country no longer merited emerging-market status.

The dollar index fell 0.26%, and the euro rose from a recent 17-month low to around $1.1238. The yield on benchmark 10-year US notes rose 0.17 basis points to 5.085%. Brent crude settled up 3.72% at $109.86 a barrel on concerns over Middle East supplies, and gold gained 0.07% to $4,167.14 an ounce.

why it matters

The main risks for markets are doubts about how AI infrastructure is financed and tensions around the Strait of Hormuz. Gains in gold and oil alongside a weaker dollar suggest some investors are turning to commodities and government debt for protection.

market impact

US stocks and tech sector: pressure from doubts over AI financing; oil and gold: support from geopolitical risk

tags

instruments