stock exchange

Published on
20/08/2026 – 8:19 GMT+2

Oil prices rose on Thursday, holding near their highest levels in weeks, as the deadlocked standoff between the United States and Iran kept supply concerns elevated in the Middle East.

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Brent crude, the international benchmark, rose 0.3% to $91.90 a barrel, while US benchmark crude edged up 0.2% to $84.57 a barrel.

Prices have climbed steadily since the start of August, when Brent was trading at around $87.38 a barrel, as the standoff over the Strait of Hormuz keeps supply concerns elevated even without any single new escalation.

Both benchmarks remain well above the barrel prices they were trading at before the war began.

Markets rebound on Treasury move

Global shares rallied on Thursday, reversing course after Wednesday’s heavy sell-off in artificial intelligence-related stocks, after the US Treasury Department said it would at least double the size of its buyback operations for longer-dated government debt, to $4 billion (€3.4bn) or more per operation, starting in September.

The move eased pressure on bond markets that had pushed yields to multi-decade highs in recent months, and lifted risk appetite across Asia.

South Korea’s Kospi surged 6.1% to 6,858.91, rebounding sharply after sinking 5.8% on Wednesday. Samsung Electronics jumped 9.7%, while SK Hynix surged 14.1% after the memory chipmaker announced a share buyback plan.

Japan’s Nikkei 225 added roughly 0.9%, while the Topix rose 0.8%, recovering some of Wednesday’s losses. Hong Kong’s Hang Seng gained 1.1% to 25,786.32, and the Shanghai Composite rose 0.3% to 3,905.23. Australia’s S&P/ASX 200 was up 0.3% to 9,066.40.

Bond yields ease from multi-decade highs

The yield on the 10-year US Treasury fell to around 4.64%, from 4.71% on Tuesday, while the 30-year yield dropped to 5.18% from 5.28% — pulling back from its highest level since 2007.

Yields have climbed in recent months on concerns over inflation stemming from the war in Iran and rising government debt.

Japan’s 10-year government bond yield, which had been trading near a three-decade high, fell to around 2.83% from more than 2.89% on Wednesday.

On Wall Street on Wednesday, the S&P 500 climbed 0.2% for its first gain in four sessions, snapping a three-day losing streak. The Dow Jones Industrial Average and the Nasdaq composite each added 0.2%.

The US dollar rose to 158.60 yen from 158.16, while the euro slipped slightly to $1.1676 from $1.1677.

Additional sources • AP

Published on
18/08/2026 – 11:05 GMT+2

The Nasdaq announced it will begin trading US stocks for nearly 23 hours a day from Sunday 6 December onwards.

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The move, still subject to SEC approval, means Nasdaq’s trading day will stretch from Sunday evening to Friday evening with barely a pause.

For European investors, the new window of 9pm to 4am ET will be 3am to 10am CET, meaning Europeans could be trading Nasdaq-listed stocks for almost an entire session before London opens.

Nasdaq already runs extended sessions from 4am to 9:30am, called pre-market session, and 4pm to 8pm ET, named after-hours session, around its core 9:30am to 4pm hours, but access to that early and late trading has largely been exclusive to institutional investors with direct market connections.

Nasdaq president Tal Cohen has framed the expansion as a way to “broaden investor access and expand wealth-building opportunities” for everyone else.

The pitch is also backed by numbers as foreign holdings of US equities reached $17 trillion (€14.6tn) by mid-2024, up 97% since 2019, a surge Nasdaq wants to capture directly rather than cede to platforms already open around the clock.

A market that increasingly never sleeps

Traditional exchanges have been under mounting pressure to broaden access and increase available hours.

Geopolitical shocks under the Trump administration have repeatedly landed when Wall Street was shut, most notably when US and Israeli strikes on Iranian nuclear sites were announced on a Saturday morning in February, forcing traders onto crypto exchanges and decentralised platforms to price oil, gold and silver in real time.

Those venues, along with newer tools such as tokenised real-world assets, which are digital tokens representing ownership of stocks, bonds or commodities, and perpetual futures contracts that let investors bet on an asset’s price with no expiry date, have shown that demand for round-the-clock trading does not wait for exchanges to open.

Nasdaq is also not moving alone.

Rival NYSE has already won SEC approval for a 22-hour day running from 1:30am to 11:30pm ET, while Cboe, the largest exchange for options contracts in the US, has outlined similar ambitions.

Nasdaq first signalled its own intent to go nearly continuous back in March with this week’s announcement filling in the details.

The new evening session serves as the first concrete building block, opening the market for nearly 23 hours in a five-day trading week, as the exchange ultimately wants to offer 24/7 trading.

European shares have started August 2026 in almost the opposite way to what their seasonal reputation would suggest.

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The EURO STOXX 50 and DAX are hovering near record highs, while the CAC 40 remains close to its peak. Yet August has historically been one of Europe’s weakest months.

That contradiction raises a more interesting question than whether investors should simply “sell in August”.

The data suggests August is not consistently a bad month. Instead, its poor reputation has been shaped by a small number of extraordinary market shocks.

European markets are defy ‘August curse’

European shares have started August 2026 in almost the opposite way to what their seasonal reputation would suggest.

The EURO STOXX 50 and DAX are hovering near record highs, while the CAC 40 remains close to its peak. Yet August has historically been one of Europe’s weakest months.

That contradiction raises a more interesting question than whether investors should simply “sell in August”.

The data suggests August is not consistently a bad month. Instead, its poor reputation has been shaped by a small number of extraordinary market shocks.

Germany’s DAX, which tracks the 40 largest companies on the Frankfurt exchange, tells the same story going back to 1970.

August has averaged a loss of 1.03%. September has averaged a loss of 1.64%.

France’s CAC 40, which tracks the 40 biggest companies in Paris, has data going back to 1988. August has averaged a loss of 1.22%. September has averaged a loss of 1.38%.

Three different countries, three different stretches of history — and exactly the same ranking. September worst, August second.

Yet August 2026 has looked nothing like that.

On 11 August, the EURO STOXX 50 closed at an all-time high above 6,560 points, up roughly 13% since the start of the year. The DAX moved above 26,450 for the first time, while the CAC 40 finished around 8,740 points.

So who is right — the calendar or the market?

The short answer: the calendar has a much weaker case than it appears.

The average August is not the typical August

An average is only useful when the numbers around it are relatively similar.

Picture five people walking into a room. Four earn €30,000 a year, one earns €1 million. The average income in that room suddenly looks far higher than what most people actually take home.

August equity returns have a similar problem. A handful of extreme crashes drag the long-term average sharply lower.

That is where the median becomes useful. It is simply the middle observation once every August return is ranked from worst to best, so half the years sit below it and half above — a better guide to what a typical August actually looks like.

For the EURO STOXX 50, the median August return is -0.19%, a very different picture from the -1.42% average. The typical August has been close to flat.

Five Augusts explain the damage

Most of the damage comes from five extraordinary episodes.

In August 1998, the EURO STOXX index fell 14.44% as Russia defaulted on domestic debt and devalued the rouble.

In August 1990, it dropped 13.82% after Iraq invaded Kuwait. August 2011 brought a 13.79% fall as the eurozone debt crisis intensified around Italy and Spain. In August 1997, the index lost 9.99% as the Asian financial crisis spread across the region, and in August 2015 it fell 9.19% when China devalued the yuan.

These were not ordinary corrections. They were global shocks that happened to land in August.

Strip out those five years and the EURO STOXX 50’s average August return flips from -1.42% to +0.17%. Five years out of 39 turn a seemingly weak month into a slightly positive one.

Why can August amplify a shock?

The explanation may have less to do with the month itself than with how markets function during the summer.

Europe effectively goes on holiday in August. Trading desks thin out and fewer investors are actively setting prices. That does not cause a sell-off on its own, but it can make markets more sensitive once one begins.

There are also fewer scheduled monetary-policy decisions. The European Central Bank’s latest meeting was in July, with its next scheduled decision not due until September.

The US Federal Reserve follows a similar summer gap, leaving markets with fewer major policy events to anchor expectations at precisely the moment liquidity is thinnest.

Then there is Jackson Hole. The Federal Reserve’s annual conference in Wyoming, held later in August, can become a major market event in its own right, particularly when investors are hunting for clues on interest rates.

This year’s gathering carries extra weight: it is Kevin Warsh’s first Jackson Hole address as Fed chair.

August therefore combines three potentially volatile ingredients: thinner liquidity, fewer scheduled policy events, and the possibility of a significant central bank signal arriving late in the month.

What makes August 2026 different?

The historical pattern is only useful if investors understand what has changed.

European equities entered August at or near record highs, underpinned by strong earnings expectations. Reuters reported that analysts had raised expectations for second-quarter earnings growth across the STOXX 600 to almost 21%, up from 12.5% in May — giving markets a fundamentally stronger backdrop than the historical average would suggest.

But there is another side to the ledger. The Middle East energy shock remains a risk for Europe: higher energy prices could push inflation back up while squeezing consumers and corporate margins at the same time.

Eurozone inflation eased to 2.8% in June, down from 3.2% in May, though a fresh energy shock could complicate the path back to the European Central Bank’s 2% target.

That leaves an unusual setup heading into the rest of the month.

So should investors fear August?

The historical record does not say European stocks must fall this month. In fact, the EURO STOXX 50 and DAX have both finished August higher almost half the time.

What history does show is more subtle: August is not necessarily Europe’s seasonal crash month. It is a month in which rare shocks have historically produced unusually large losses. That distinction matters in 2026.

Investors do not need to predict whether August will end higher or lower. The more useful question is whether markets, having just reached record highs, are sufficiently prepared for an unexpected shock arriving while liquidity is thin.

That is what the August pattern is really warning about — not a calendar effect, but a vulnerability.

European equities keep reaching new highs.

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The pan-European STOXX Europe 600 climbed to another record on Wednesday, closing at around 657 points after touching a fresh intraday high and extending its winning streak to a third consecutive session.

The blue-chip EURO STOXX 50, which tracks the euro area’s largest listed companies, also set a new all-time high during the day. The broader benchmark has now gained about 10% since the start of 2026.

The rally is broad-based. Germany’s DAX broke above 26,100 for the first time. France’s CAC 40 climbed to a record 8,700, while Italy’s FTSE MIB reached an unprecedented 53,540.

Record highs everywhere

Yet the companies leading Europe’s bull market bear little resemblance to the household names that have long defined the continent’s equity story.

Luxury groups are nowhere to be seen. Neither are the pharmaceutical giants that traditionally anchor European portfolios. Even banks, despite a strong year, have largely been overtaken.

Instead, the biggest winners of 2026 are the companies building the infrastructure behind the artificial intelligence boom: manufacturers of semiconductor wafers, chip-testing equipment, advanced substrates and industrial technology.

Europe’s stock market is no longer being led by brands consumers recognise. It is increasingly being powered by the suppliers enabling the world’s AI capital-spending race.

Why European stocks keep setting records

Several forces have come together to fuel the rally.

The immediate catalyst was geopolitical.

Reports that Washington and Tehran are moving towards a new agreement to reopen the Strait of Hormuz pushed oil prices sharply lower, easing inflation fears and reducing cost pressures for Europe’s manufacturers and airlines.

The economic backdrop has also surprised investors.

Eurostat’s preliminary estimate showed the eurozone economy expanded 0.4% quarter-on-quarter in the second quarter, double economists’ expectations, following flat growth in the first quarter. Annual growth accelerated to 1.0%.

Pantheon Macroeconomics’ chief eurozone economist Claus Vistesen said the euro area “comfortably beat expectations yesterday, posting GDP growth of 0.4% quarter-to-quarter in Q2, after upwardly revised zero growth in Q1. This was 0.2pp above the consensus and 0.1pp above our forecast.”

Corporate earnings have added another pillar of support.

Second-quarter reporting has generally exceeded expectations, while global enthusiasm for artificial intelligence infrastructure has transformed a small group of European technology suppliers into some of the world’s best-performing stocks.

The 10 best-performing STOXX Europe 600 stocks in 2026

These are the 10 best-performing European stocks with a market capitalisation of €1 billion or more, ranked by share price performance through 5 August.

10. ArcelorMittal (+65.3%)

Europe’s steel champion has quietly become one of this year’s biggest industrial winners.

Shares of ArcelorMittal have gained 65.3% since the start of 2026, making the company the tenth-best performer in the STOXX Europe 600 through 5 August.

The Luxembourg-based group reported revenue of $16.5 billion in the second quarter and underlying operating profit of $2.1 billion, its strongest performance in Europe for three years.

Profitability improved as new EU import quotas reduced competition from cheaper foreign steel, while the company continued buying back its own shares, returning more cash to investors.

9. Raiffeisen Bank International (+67.6%)

Higher interest rates and resilient economic activity across Central and Eastern Europe have helped the Austrian lender outperform most of its European peers. Raiffeisen Bank International shares have climbed 67.6% year-to-date through 5 August.

First-half profit excluding Russia rose 25% to €708 million, prompting management to raise its full-year forecast for net interest income to €4.4–4.5 billion.

Investors have also welcomed stronger capital levels and easing concerns over the bank’s Eastern European operations.

8. Saipem (+75.8%)

The Italian engineering group has benefited from the global revival in offshore energy investment.

Saipem stock is up 75.8% in 2026 through 5 August, extending one of the strongest rallies among European industrial companies.

First-half revenue increased to €7.35 billion, while underlying operating profit rose 9.4% to €836 million. Its order book expanded to a record €29.9 billion, giving the company years of work already secured despite trimming guidance to reflect around €70 million of conflict-related costs.

7. STMicroelectronics (+105.7%)

The Franco-Italian chipmaker has emerged as one of Europe’s biggest beneficiaries of renewed enthusiasm for artificial intelligence infrastructure.

Shares of STMicroelectronics have more than doubled in 2026, rising 105.7%.

Second-quarter revenue climbed 26% to $3.49 billion, while the company returned to an operating profit after several difficult quarters. Management forecast around $3.7 billion in revenue for the current quarter, signalling that the semiconductor downturn is gradually easing.

6. AIXTRON (+121.0%)

The German company manufactures highly specialised equipment used to produce advanced semiconductors.

AIXTRON shares have surged 121% since the beginning of the year, placing the company among Europe’s biggest AI winners.

Second-quarter orders jumped 81% to €214.5 million, driven by booming demand for photonics and power-chip manufacturing equipment. Management reaffirmed its full-year revenue forecast of €560 million.

5. Technoprobe (+135.1%)

Few investors know Technoprobe, yet almost every advanced semiconductor relies on its testing technology before reaching customers.

Technoprobe has rallied 135.1% in 2026 through 5 August, making it one of Europe’s strongest-performing technology stocks.

Following a record first quarter with €187 million in revenue, management raised its full-year sales forecast to between €950 million and €1.05 billion, reflecting growing demand for AI-related chip testing equipment.

4. ams-OSRAM (+136.2%)

The Austrian sensor and photonics specialist has staged one of the European market’s biggest turnarounds.

ams-OSRAM stock has gained 136.2% since January.

Second-quarter revenue reached €805 million, at the top end of company guidance, while management continued making progress towards commercial production of its microLED technology for augmented-reality glasses.

Investors also welcomed the sale of its non-core sensor division to Infineon, strengthening the company’s balance sheet.

3. Tullow Oil (+136.4%)

The oil producer is the only energy company among Europe’s top-performing stocks this year.

Shares of Tullow Oil have advanced 136.4% year-to-date through 5 August.

Management recently increased its forecast for 2026 free cash flow to between $170 million and $250 million, more than doubling its previous guidance after benefiting from stronger oil prices during the first half of the year.

Ironically, the stock fell on Wednesday as hopes of easing tensions in the Middle East pushed crude prices lower.

2. AT&S (+343.5%)

Austria’s AT&S manufactures the advanced substrates that connect artificial intelligence processors with memory chips inside high-performance servers.

AT&S shares have soared 343.5% in 2026, making the company Europe’s second-best-performing stock.

When reporting quarterly results on 4 August, management forecast 30%–35% revenue growth this year, driven by continued investment in AI data centres.

Despite the spectacular rally, the shares remain about 40% below the record highs reached in June.

1. Soitec (+414.5%)

No European company has benefited more from the artificial intelligence investment boom than France’s Soitec.

Soitec shares have skyrocketed 414.5% since the start of 2026 through 5 August, making the company the best-performing constituent of the STOXX Europe 600.

The semiconductor materials specialist reported annual revenue of €592 million, down 34% as the industry worked through excess inventories. However, investors focused on signs that the recovery had begun.

Revenue from its fast-growing photonics business exceeded $100 million for the first time, while free cash flow reached €63 million, far ahead of analysts’ expectations.

Management expects revenue to return to growth during the current financial year, reinforcing confidence that Soitec is becoming one of Europe’s biggest beneficiaries of the global AI infrastructure build-out.

Shares fell on Wednesday in Europe and Asia, and oil prices surged nearly 6% after US President Donald Trump said the tentative ceasefire with Iran was over, raising the prospect of renewed military conflict between the two countries.

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Asked whether the memorandum of understanding with Iran was over, Trump told reporters at the NATO summit in Ankara: “To me, I think it’s over. I don’t want to deal with them,” according to Reuters.

This came after US Central Command said its forces struck more than 80 targets in Iran overnight, including command-and-control networks, coastal radar installations, anti-ship missile capabilities and vessels operated by the Islamic Revolutionary Guard Corps (IRGC). Washington also revoked a waiver that had allowed Iran to restart oil exports.

Brent crude, the international standard, jumped more than 6% by 10:45 CEST to $78.79 a barrel, while US benchmark crude rose 6.3% to $74.88 a barrel. Both had declined recently to around the levels seen before the war with Iran began in late February.

The latest flare-up, despite commitments to seek a peaceful resolution to the conflict, has added to uncertainty over oil prices after they fell from their peak well above $100 during the war. It also comes amid worries that the craze for artificial intelligence-related shares has pushed prices beyond the productivity gains and profits likely to result from massive investments in computer chip production capacity and data centres.

“As such, geopolitical headlines will likely determine market sentiment over the coming hours. A further deterioration in the situation could weigh further on equity valuations along with rising stress in technology,” Ipek Ozkardeskaya of Swissquote said in a commentary.

Stock markets fall

In share trading, Germany’s DAX shed more than 2.2%, at around 11 CEST, while the FTSE 100 in London lost 1.5%, and France’s CAC 40 fell more than 2%.

US stock futures were down about 1% at the same time.

In Asia, Tokyo’s Nikkei 225 lost 2.1% to 66,819.05, while South Korea’s Kospi shed 5.4% to 7,246.79.

The South Korean index has soared and then fallen back, briefly surpassing the 9,000 level last month before succumbing to heavy selling in AI-related technology shares such as Samsung Electronics and SK Hynix. Samsung fell 6.3% early Wednesday after dropping about 7% the day before. SK Hynix reversed early gains to fall 5.7%.

Taiwan’s Taiex rose 0.6%. In Hong Kong, the Hang Seng rose 3% to 24,193.56.

Shares in Chinese AI model start-up Zhipu, also known as Z.ai and traded as Knowledge Atlas Technology, rose nearly 14% on Wednesday.

The Shanghai Composite index declined 0.5% to 3,970.88.

On Tuesday, the roller-coaster ride for AI stocks turned lower again, dragging Wall Street down. The S&P 500 fell 0.4%, though the majority of stocks within the index rose.

Losses among AI-related stocks dragged the Nasdaq Composite 1.2% lower, while the Dow Jones Industrial Average fell 0.2%.

Advanced Micro Devices sank 6.5%, Intel shed 9.7%, and Micron Technology lost 4.7%.

SpaceX, which owns the xAI business, fell 6.8% on its first day of trading in the Nasdaq-100 index.

Rivian Automotive dropped 18.1% after the electric vehicle company said it would sell 75 million shares, diluting existing shareholders’ stakes.

In currency trading early Wednesday, the US dollar rose to 162.26 Japanese yen from 162.11 yen. The euro climbed to $1.1426 from $1.1414.

Uzbekistan’s largest-ever public market transaction has highlighted growing investor interest in the country and its economic reforms, while shifting attention to the next stage of developing its financial markets.

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The listing of the National Investment Fund of Uzbekistan, managed by Franklin Templeton, raised more money than all previous IPOs in the country combined over the past 30 years, according to Marius Dan, Central Asia CEO at Templeton Global Investments.

For investors and market operators, the transaction has drawn attention to a wider issue: how Uzbekistan develops the rules, institutions and market depth needed to support capital markets, debt financing, venture capital and private investment.

“What investors really want to know is that they’ll put their money in and that they will get their money back,” Julia Hoggett, chief executive of the London Stock Exchange, told Euronews.

Hoggett said investors usually begin by looking at a country’s fundamentals, including currency stability, inflation, economic growth, population trends and assets, before turning to the regulatory environment.

Building the infrastructure behind investment

Uzbekistan is preparing new financial legislation as it seeks to expand the range of financing available to companies and investors.

Laziz Kudratov, the country’s minister of Investment, Industry and Trade, told Euronews that legislation establishing the Tashkent International Financial Centre is expected to be signed soon.

The project would create a separate jurisdiction based on common law principles. Kudratov said the aim is to give foreign financial companies a legal environment based on international standards rather than requiring them to operate solely through local legislation.

He also said the planned jurisdiction would include 50 years of tax incentives, including exemptions from corporate income tax, value-added tax (VAT), property tax and customs duties.

The government is also preparing legislation covering alternative investment structures, including venture capital, private equity and limited partner-general partner investment models.

“We are also coming up with a new law on alternative investments,” Kudratov said. “It will create a framework to protect venture capital, LP and GP investment, and private equity investment in Uzbekistan.”

Dan said the National Investment Fund listing showed that international investors were willing to participate when transactions were structured in the right way.

“The initial public offering of the National Investment Fund shows that, in the right structure, investors are very keen to participate in the capital markets of the country,” he said.

Creating a deeper market

Dan said Uzbekistan’s capital market would need more companies, greater liquidity and more foreign institutional investors in the coming years.

He said continued listings of state-owned enterprises, both within and outside the National Investment Fund’s portfolio, would be important in broadening the investment universe.

Local debt markets are also beginning to attract more attention, he said, with retail investors looking more closely at investment opportunities inside Uzbekistan.

Kudratov said reforms introduced since 2017 had changed the investment environment through tax reforms, currency liberalisation and the removal of restrictions on profit repatriation.

“Any investor can come, invest and get their revenues out of the country within one day,” he said.

For Hoggett, investor confidence also depends on a proven track record.

“You can’t change things overnight and say people need to believe it. They need the evidence to see it,” she said.

Broadening participation

The growth of local debt markets and the entry of more retail investors are early signs that Uzbekistan’s financial market is beginning to widen beyond foreign institutional capital, according to Dan.

Hoggett said public markets can play a wider role by opening investment opportunities to more participants.

“The public markets are democratising,” she said.

Hoggett added that private companies are often owned by a relatively small group of investors, while public markets allow a broader range of investors to access company growth. That wider access comes with stronger disclosure requirements for issuers.

For Uzbekistan, broader participation would mean more than attracting foreign capital. It would also involve creating opportunities for domestic investors to participate in the growth of listed companies, debt markets and other financial products.

Governance and market discipline

Governance remains central to the development of Uzbekistan’s capital markets.

Dan said several companies within the National Investment Fund’s portfolio had already introduced board-level changes, including the appointment of independent directors.

“Corporate governance is key,” he said.

He described stronger oversight of state-owned companies as part of improving their operations.

Hoggett said public markets also impose discipline on companies seeking capital.

“The first rule of doing an IPO is meet your estimates, hit what you say you’re going to do,” she said.

That requires companies to build systems, controls, accounting capacity, finance teams and planning processes, she said. Hoggett added that such structures can help companies operate at scale and grow faster.

Investors are bracing for an ECB rate hike on Thursday. Markets expect the European Central Bank to raise rates by 25 basis points, which could weigh on growth and corporate earnings. Investors are also awaiting guidance on whether further hikes will follow.

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ING said in an analysis on Thursday morning that: “We expect the ECB to hike by 25 basis points from 2.0% to 2.25%, supported by a hawkish tone, but the bar has risen to surprise markets. Despite oil prices testing new lows earlier this week, the EUR curve is increasingly set on three rate hikes.”

Stock markets across Europe opened in positive territory despite the drop in Asian shares following another sell-off in AI-related stocks on Wall Street on Wednesday.

The Euro Stoxx 50 opened 1.2% higher but the broader pan-European Stoxx 600 rose was flat in early trading.

Germany’s Dax and France’s CAC 40 were both up by 1%, while the UK’s FTSE 100 led with a 1.2% gain. Meanwhile, Italy’s FTSE MIB rose by 0.7%.

In other dealings, Asian shares mostly fell on Thursday after another sell-off in artificial intelligence stocks weighed on Wall Street, while oil prices rose.

Japan’s Nikkei 225 lost 0.5%, South Korea’s Kospi fell 0.2%, and Australia’s S&P/ASX 200 slipped 0.2%. Taiwan’s Taiex declined 0.4%.

Hong Kong’s Hang Seng index edged 0.2% higher, while Shanghai’s Composite index dropped 0.2%.

On Wall Street, on Wednesday, the S&P 500 fell 1.6%, marking its first consecutive decline in three weeks. The Dow Jones Industrial Average dropped 1.9%, while the Nasdaq Composite lost 2%.

Wall Street has been unsettled since last week, when AI stocks reversed course after hitting record highs. Investors are weighing whether the recent pullback has eased concerns over excessive optimism or signals the beginning of a more prolonged downturn.

Super Micro Computer, which sells AI servers, plunged 28% after announcing late on Tuesday plans to raise $7 billion through sales of common stock and convertible preferred shares. Companies often seek to raise capital when share prices are elevated, though such moves can dilute existing shareholders’ stakes.

Micron Technology swung between gains and losses before ending down 4.7%. The stock has experienced sharp volatility in recent sessions, having fallen 7.7% last Thursday, dropped a further 13.3% on Friday and then rallied 9.9% on Monday. Despite the swings, its shares remain up 212.5% so far this year.

Nvidia, the chipmaker that has grown into a nearly $4.9 trillion company on the back of the AI boom, was the biggest drag on the S&P 500 after falling 3.7%. Broadcom, another major AI beneficiary, lost 5.1%.

Some pressure on AI-related shares may also be linked to investors raising cash ahead of several high-profile stock market debuts in the United States. SpaceX’s initial public offering could take place later this week.

Weakening stocks for companies with big fuel bills also pulled the market lower. United Airlines sank 6.2%, and cruise operator Carnival fell 6.3% after oil prices rose due to the latest fighting in the war with Iran.

Oil prices and US inflation

Brent crude rose 1.8% to $93.10 a barrel on Wednesday after President Donald Trump warned that Iran would “pay the price” for stalled negotiations between the two sides over the conflict. The war has effectively closed the Strait of Hormuz to oil tankers, disrupting crude shipments from the Persian Gulf to customers worldwide.

Higher oil prices have added to inflationary pressures. A report released on Wednesday showed US consumer prices rose in May at the fastest annual pace in three years.

Traders are increasingly betting that the Federal Reserve will need to raise its benchmark interest rate at least once this year in response to persistent inflation and a resilient labour market.

Higher yields can slow economic growth and weigh on a range of investments, including stocks and cryptocurrencies. They tend to hit the most highly valued assets hardest, and some critics argue that enthusiasm around AI has inflated a market bubble.

In early European trading, Brent crude was up by 0.5% at $93.60 a barrel, while US benchmark crude gained 0.7% to $90.70.

The US dollar traded at 160.58 Japanese yen in the morning. The euro rose slightly to $1.1542, and the UK pound cost $1.3377.

The gold prices dipped by 0.6% to $4,109.60 an ounce.

As the rally in AI stocks fades, investors were cautious at the open on Friday, with European markets opening to mixed sentiment following steep falls in Asian markets.

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Indices in London and Frankfurt quickly moved into negative territory, with the FTSE 100 dropping nearly 0.4% and the DAX losing 0.3% right after the opening. The Paris CAC 40 and the IBEX 35 in Madrid were both up 0.3%, while Milan’s main index was flat. So was the EURO STOXX 50, a benchmark index of 50 blue-chip companies from the eurozone.

Investors are awaiting the latest US non-farm payrolls report and keeping an eye on developments in the Middle East.

The US job data is important for forecasting what the Fed’s next move could be. Kathleen Brooks, research director at XTB, said in a market note, “There is now a near 40% chance of a rate hike by year-end. We expect financial markets to be extremely sensitive to today’s data,” adding that this will be the first such report with Kevin Warsh as chairman of the Federal Reserve.

In the UK, the latest data from Halifax showed that house prices unexpectedly declined in May. House prices fell 0.1% month on month, but were still up 0.5% year on year, missing expectations for a 1% jump.

Oil markets are awaiting further direction

Oil prices stabilised after falling on Thursday. Brent crude, the international benchmark, was slightly down and traded at $94.73 per barrel at 10:00 CET. It had been trading at about $70 per barrel before the start of the war in late February.

Benchmark US crude was little changed at $92.51 a barrel.

Oil prices remain under pressure as the Strait of Hormuz, a narrow waterway crucial for global oil and natural gas transport, remains effectively closed, and the war-induced energy shock is threatening to slow economic growth and fuel inflation in many countries.

American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalised. Meanwhile, developments in Lebanon have cast doubt on the prospects for a permanent end to the conflict.

On Thursday, the Iran-backed Lebanese militant group Hezbollah rejected the latest ceasefire agreement between the Lebanese and Israeli governments.

“While there are few signs of progress in US-Iran talks, the oil market continues to trade on expectations of an imminent deal that would resume flows through the Strait of Hormuz,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a report.

Asian markets lose steam as AI craze cools

Wall Street rallied on Thursday after falling oil prices and bond yields eased pressure on US stocks. Banks, small-cap companies and other stocks that had previously been left behind by the euphoria around artificial intelligence led the gains.

Banks also helped lead the market, including gains of 5% for Goldman Sachs, 4.7% for Fifth Third Bancorp and 4.4% for U.S. Bancorp.

They helped to more than make up for losses among some AI stocks, which took a sudden back seat after dominating the market. Analysts have been saying AI stocks may have run too high, becoming too expensive, and that the broader US stock market may be set for a slowdown following an unrelenting streak of nine straight winning weeks for the S&P 500, its longest since 2023.

On Wall Street on Thursday, computer chipmaker Broadcom’s shares sank 12.6% after it issued guidance that fell short of investors’ expectations, raising concerns about the wider AI and technology sector.

US memory chip maker Micron Technology dropped 7.7%, and cybersecurity company CrowdStrike Holdings fell 3.8%.

Still, the benchmark S&P 500 climbed 0.4%, and the Dow Jones Industrial Average gained 1.7% to a record high. The tech-heavy Nasdaq Composite edged 0.1% lower.

But in Asia, investors dumped key AI-related shares, with South Korea’s SK Hynix plunging 8.6% and Samsung Electronics shedding 5.4%.

The Kospi dropped 5.1% to 8,199.44. The index has roughly doubled over the past year, lifted by gains in major technology companies.

Japan’s Nikkei 225 slipped 1.3% to 66,573.85, with technology shares leading the decline, even as official data showed that Japan’s real wages rose for the fourth consecutive month. Chip equipment maker Tokyo Electron’s shares fell 7%.

Hong Kong’s Hang Seng declined 1.2% to 24,948.96, while the Shanghai Composite Index fell 0.3% to 4,045.45.

Australia’s S&P/ASX 200 fell 0.7% to 8,623.50.

Taiwan’s Taiex gave up 1.3%, while India’s Sensex was up 0.1%.

In other trading early on Friday, the US dollar fell to 159.96 Japanese yen from 160.03 yen. The euro was trading at $1.1635, up 0.2%. Gold prices were down 0.3%, trading at around $4,490.70.