The S&P 500 Index closed down 0.79% on Monday, with the Dow Jones Industrial Average decreasing by 0.26% and the Nasdaq 100 dropping 1.88%. South Korea’s Kospi Index suffered a significant decline, closing down over 8% as major chipmakers SK Hynix and Samsung Electronics fell more than 10% due to concerns about an overextended AI market. In the U.S., rising crude oil prices surged over 9% to a 3.5-week high, influenced by renewed hostilities between the U.S. and Iran, which included missile attacks targeting Iranian infrastructure.
Following the rise in oil prices, the 10-year T-note yield reached a 7-week high of 4.61%, driven by inflation expectations. Fed Governor Christopher Waller indicated the need for potential interest rate hikes if inflation readings remain high. Additionally, estimates suggest Q2 earnings may rise by 23%, with AI infrastructure stocks projected to contribute significantly to this growth.
Global stock markets mixed on Monday, with the Euro Stoxx 50 increasing by 0.02%, while China’s Shanghai Composite and Japan’s Nikkei-225 both fell by 2.06% and 1.92%, respectively.
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