Global Stocks Slip as Markets Calm After Tech Selloff and Dollar Drops

Global stocks fell slightly on Friday as markets calmed down after a big tech selloff, while the US dollar headed for a weekly loss due to lower Treasury yields. Bond markets steadied after a heavy rush for safe havens earlier in the week.

Market Movement

On Wall Street, the benchmark S&P 500 and the Nasdaq traded down and headed for weekly losses, while the Dow Jones Industrial Average fell 0.57 percent. The S&P 500 lost 1.3 percent and the Nasdaq Composite fell 2.3 percent. Technology and communication services led the losses, whereas utilities and energy stocks were the top gainers. CoreWeave shares dropped 13 percent amid worries over AI infrastructure financing. The MSCI World Equity Index lost 0.54 percent.

Global Impact

European stock indexes gained, with the STOXX 600 adding 0.72 percent and London's FTSE 100 rising 0.38 percent. Asian stocks mostly rose, except for Indonesian equities, which suffered their biggest drop since 1998 after index provider MSCI stated the country's market no longer merited emerging-market status. Meanwhile, Brent crude futures rose 3.72 percent to settle at $109.86 a barrel due to supply concerns from the Middle East. Gold rose 0.25 percent to $4,159.69 an ounce.

Context

Global financial markets often experience shifts when investors react to new inflation figures and changing central bank interest rates. Major technology and artificial intelligence sectors have grown rapidly, drawing massive investments as well as close scrutiny regarding how companies fund their large data center projects.