Global Stocks Drop

Global equities remained under pressure as renewed selling in semiconductor stocks and uncertainty surrounding OpenAI weighed on investor sentiment, capping a volatile week for AI-related assets.

Nasdaq 100 futures fell 1.1%, while S&P 500 futures slipped 0.4%.

Semiconductor names, including Micron, declined in premarket trading alongside optical technology stocks.

In Asia, sharp losses in Samsung and SK Hynix triggered a second trading suspension in South Korea within days, highlighting continued volatility across the chip sector.

Markets are closing out a turbulent week as investors reassessed the AI trade, weighing elevated valuations against corporate earnings and capital spending plans.

The cautious mood was reflected in fund flows, with investors pulling money from US equities for the first time in three months, including record outflows from technology-focused funds.

Oil resumed its decline, with Brent crude falling 3.3% to below $73 per barrel as shipping continued to move through the Strait of Hormuz despite Thursday's attack on a commercial vessel.

The easing in oil prices provided support for bond markets, even as it failed to improve broader equity sentiment.

Treasuries advanced, with the two-year yield falling 3 bps to 4.09%.

European government bonds also strengthened after traders scaled back expectations for another 25 bps rate hike from the ECB in 2026, reflecting growing confidence that the tightening cycle is nearing its end.