Global markets diverge as AI slowdown calls and surging oil roil trading

Markets across Asia, Europe, and North America split along fault lines of oil exposure and technology dependence on Tuesday as twin fears over surging crude prices and a potential slowdown in artificial intelligence spending rippled through a second day of trading.

AI Slowdown Calls Hammer Chips, Lift Software

The selloff in semiconductor and AI-linked stocks deepened after Anthropic CEO Dario Amodei on Saturday urged companies to slow AI model development to address misuse risks, a call echoed by Elon Musk and OpenAI CEO Sam Altman. The remarks raised the prospect of reduced AI capital expenditure, sending shockwaves through chip names globally. SK Hynix ↗ 2.46% ADRs fell 7.6%, while Nvidia ↗ 1.34% dropped 3.4% and Broadcom ↗ 2.97% lost 4.8% in the prior U.S. session. South Korea's Kospi slid 0.76% as Samsung Electronics and SK Hynix extended losses, while France's Soitec tumbled 12.5% to become the Stoxx 600's worst performer. In a notable countertrend, European software stocks rallied, with Capgemini, Sage The Sage Group plc, and RELX ↘ 2.82% gaining between 5% and 7.5% on the logic that slower AI progress extends the runway for traditional SaaS businesses.biz.chosun+1

Oil and Yields Tighten the Vise

Brent crude futures rose above $105 per barrel while WTI topped $101, fueled by fresh strikes on Saudi energy infrastructure and Houthi attacks that put the Red Sea export port of Yanbu on alert. The oil surge pushed U.S. 10-year Treasury yields above 5% for the first time since October 2023, with the Federal Reserve's two-day FOMC meeting beginning Tuesday and markets pricing in a likely 25-basis-point rate hike.investinglive+3

Divergent Fortunes Across Regions

Japan's Nikkei 225 ended little changed at 63,484 after recovering from an early decline, while India's Nifty 50 rebounded roughly 0.5% as IT stocks including HCL Technologies, Infosys ↘ 2.26%, and Tata Consultancy Services attracted buyers seeking value. Australia's ASX 200 fell nearly 1% to an 11-week low. London's FTSE and Zurich's SMI bucked the European trend with modest gains of 0.4% and 0.8%, respectively, buoyed by healthcare stocks after GSK ↘ 1.65% reported positive lung cancer trial results. In Toronto, the S&P/TSX Composite edged marginally higher on Monday as energy sector strength offset AI-driven tech losses, underscoring how oil-producing economies have found a partial buffer against the broader rout.businesstimes+4