Global markets recorded mixed performance as falling oil prices provided support to several Wall Street indices, while technology and artificial intelligence stocks experienced sharp declines.
Major US benchmarks showed divergent movements, reflecting a shift in investor sentiment amid fluctuating energy prices and fresh economic data from the United States.
Mixed Performance on Wall Street
The S&P 500 slipped 0.1 percent after pulling back from a recent record high. In contrast, the Dow Jones Industrial Average climbed about 720 points, marking a gain of 1.4 percent.
Meanwhile, the Nasdaq Composite declined 0.7 percent, weighed down by heavy losses in technology and AI related stocks.
The divergence highlights a rotation toward industrial and traditional sectors, as investors reassessed valuations in high growth technology shares.
Oil Prices Decline After Recent Gains
Brent crude prices fell by 2.9 percent in one session to $94.96 per barrel, before later trading around $97.14 per barrel amid ongoing volatility.
US West Texas Intermediate crude dropped 0.65 percent to $95.40 per barrel.
The pullback followed strong gains in previous sessions driven by geopolitical tensions between Washington and Tehran. Investors are now closely monitoring the possibility of an agreement to reopen the Strait of Hormuz to oil tankers, which could increase global supply and put downward pressure on prices.
US government data also showed that crude oil inventories declined by 8 million barrels to 433.7 million barrels in the week ending May 29, according to the Energy Information Administration.
Sharp Losses in AI and Technology Shares
Technology stocks, particularly those linked to artificial intelligence, posted notable declines despite some companies reporting earnings above expectations.
Broadcom shares fell 14.5 percent, even after surpassing profit forecasts, as analysts expressed concerns about stretched valuations.
Other notable declines included:
– Marvell Technology, down 4.6 percent
– Micron Technology, down 8.1 percent
– CrowdStrike Holdings, down 7.9 percent
Analysts attributed the drop to profit taking and worries that valuations in the AI segment may have risen too rapidly.
Treasury Yields and Economic Indicators
In the bond market, the yield on the 10 year US Treasury note declined to 4.45 percent, easing pressure on equity markets.
At the same time, data showed a slight increase in US jobless claims, pointing to a modest slowdown in the labor market.
The combination of lower yields and softer labor indicators helped cushion broader market volatility.
Global Market Reaction
In Europe, markets posted slight gains, supported by energy and industrial stocks.
Asian markets, however, ended lower across the board:
– South Korea’s Kospi fell 1.8 percent
– Hong Kong’s Hang Seng declined 1.5 percent
– Japan’s Nikkei dropped 1.4 percent
The declines reflected cautious investor sentiment amid ongoing energy price fluctuations and global economic uncertainty.
Conclusion:
Global markets remain sensitive to movements in oil prices and technology valuations. While lower crude prices offered relief to parts of Wall Street, sharp losses in AI related stocks highlighted concerns about elevated valuations. Future market direction will likely depend on energy supply developments and upcoming economic data.
