Global markets experienced a turbulent overnight session, largely driven by concerns surrounding a new Chinese AI model developed by DeepSeek. This spurred a significant sell-off in US tech stocks, with the Nasdaq dropping 3 percent and Nvidia plunging 16.7 percent. Broadcom also suffered a substantial decline.
The Dow Jones Industrial Average rose by 289.33 points, or 0.65%, finishing at 44,713.58. The gains in Apple, Johnson & Johnson, and Travelers helped propel the 30-stock index higher.
The US 10-year Treasury yield fell to a 2025 low of 4.5 percent, as investors sought safety.
Similarly, oil prices slipped by over 2 percent, falling below $73 a barrel. The sell-off extended to cryptocurrency, with Bitcoin plummeting 5.1 percent to a near two-week low of $99,740.
In Europe, a more measured response was witnessed, with the Stoxx Europe 600 index only marginally down. Investors piled into defensive sectors like chemicals and food, which held up well, while British American Tobacco saw a boost after an upgrade. The more bearish sentiment saw a sell off in risky assets, sending equities, commodity, and cryptocurrency markets lower.
Turning to Australian markets, ASX futures are showing a flat open. The Australian dollar is holding steady at around US62.93.
Looking at company news, Commonwealth Bank announced a $940 million sale of a stake in Bank of Hangzhou, adding to the banking sector news. Pilbara Minerals is expected to release a quarterly update later today.
Copyright 2025 – Finance News Network
Source: Finance News Network
