U.S. Stocks Falter Amid AI Fears
The U.S. stock market declined sharply on January 30, led by a 2% drop in the Nasdaq and a 1.2% dip in the S&P 500. Pressure on tech giants, including Nvidia and Microsoft, stemmed from emerging competition in AI, particularly from China’s DeepSeek.
Asia’s Diverging Market Trends
Asian markets presented a mixed picture, with Japan’s Nikkei 225 falling 1% amid rate hikes and growth concerns. Meanwhile, Hong Kong’s Hang Seng Index climbed 0.5%, buoyed by selective tech stock rebounds despite broader caution across the region.
Europe Watches Economic Data Closely
European stocks are expected to open on a weaker note. The FTSE 100, DAX, and CAC 40 could all post declines as investors await key economic indicators and analyze the impact of the U.S. tech sector’s struggles on global sentiment.
Stable Forex, Cautious Crypto
Currency markets remained steady, with the U.S. dollar holding at $1.05 per euro. Bitcoin traded near $106,000, reflecting investor hesitancy amid broader regulatory and economic concerns.
Gold Glows as Oil Slips
Gold prices rose to $2,755 per ounce as market participants sought safe-haven assets. Brent crude oil slipped to $75 per barrel, driven by subdued demand and weak Chinese economic data.
Market Drivers to Watch
- Data Focus: Economic reports, including manufacturing PMIs and employment figures, will shape near-term market sentiment.
- Trade Tensions: U.S.-China relations remain a wildcard for global markets.
- Sector Rotation: Defensive plays in healthcare and consumer staples may gain traction amid tech volatility.
