By Tech Sell-Off Drags U.S. Markets
U.S. stocks tumbled on January 30, with the S&P 500 down 1.2% and the Nasdaq falling 2%. Competitive threats from Chinese AI startup DeepSeek weighed heavily on tech stocks. Nvidia suffered a 15% weekly drop, while Microsoft also saw declines amid fears of losing dominance in the AI space.
Asia’s Mixed Momentum
Asian markets displayed a blend of losses and gains. Japan’s Nikkei fell 1% due to growth worries, while Hong Kong’s Hang Seng Index rose 0.5%, driven by selective tech recoveries. However, regional markets remain cautious, influenced by U.S. volatility.
Europe Braces for Weak Open
European stocks are set to open lower, with declines expected for the FTSE 100, DAX, and CAC 40. Market sentiment hinges on upcoming economic indicators, particularly Germany’s Ifo Business Climate Index, as investors digest the ripple effects of U.S. tech struggles.
Forex & Crypto Markets Stay Steady
Currency markets saw minimal shifts, with the U.S. dollar steady at $1.05 per euro. Bitcoin hovered around $106,000, reflecting a cautious stance from investors amid global uncertainties.
Commodities: Safe-Haven Demand for Gold
Gold prices rose to $2,755 per ounce as investors sought stability during market turbulence. Oil prices fluctuated, with Brent crude at $75 per barrel, weighed down by weak Chinese manufacturing output and global supply concerns.
Outlook: What’s Next for Markets?
- Economic Releases: Key data on manufacturing PMIs and U.S. jobs could guide market sentiment.
- Geopolitical Risks: Trade tensions between the U.S. and China remain a significant overhang.
- Investment Trends: Defensive sectors may see inflows as tech struggles continue.