AI Selloff Deepens & Treasuries Rally - Europe Market Wrap
Global stocks extended losses as the AI selloff intensified, driving investors toward bonds. S&P 500 futures fell 0.3%, while Nasdaq 100 futures declined 1.1% after Anthropic disclosed $16.8B in Q3 2026 growth to prospective investors, signalling a slowdown despite continued expansion. Chip stocks remained under pressure, with a semiconductor ETF falling 2.2% in US premarket trading, signalling a sixth consecutive session of losses. CoreWeave dropped another 5.7% following Wednesday's 15% decline, while its bonds fell to distressed levels. South Korea's Kospi plunged 7.6%, with Samsung and SK Hynix both sinking more than 9%. TSMC fell 2% despite beating profit estimates, as margins disappointed. Treasuries extended gains as elevated yields attracted investors seeking safety, with 10-year yields declining 11 bps to 5.08%, their lowest level in three weeks. The Swiss Franc strengthened on haven demand, while the Dollar weakened 0.2% and Brent crude slipped toward $104 a barrel. Markets remained focused on inflation after stronger-than-expected US CPI prompted traders to increase bets on further Fed rate hikes. Thursday's producer price data will provide another indication of underlyi
Global stocks extended losses as the AI selloff intensified, driving investors toward bonds. S&P 500 futures fell 0.3%, while Nasdaq 100 futures declined 1.1% after Anthropic disclosed $16.8B in Q3 2026 growth to prospective investors, signalling a slowdown despite continued expansion. Chip stocks remained under pressure, with a semiconductor ETF falling 2.2% in US premarket trading, signalling a sixth consecutive session of losses. CoreWeave dropped another 5.7% following Wednesday's 15% decline, while its bonds fell to distressed levels.
South Korea's Kospi plunged 7.6%, with Samsung and SK Hynix both sinking more than 9%. TSMC fell 2% despite beating profit estimates, as margins disappointed. Treasuries extended gains as elevated yields attracted investors seeking safety, with 10-year yields declining 11 bps to 5.08%, their lowest level in three weeks. The Swiss Franc strengthened on haven demand, while the Dollar weakened 0.2% and Brent crude slipped toward $104 a barrel.
Markets remained focused on inflation after stronger-than-expected US CPI prompted traders to increase bets on further Fed rate hikes. Thursday's producer price data will provide another indication of underlying price pressures, as investors weigh persistent inflation against mounting concerns over AI valuations.