The rout continues with S&P 500 futures down over 2% now

Tech shares are the primary drag with Nvidia itself down some 11% in pre-market buying and selling. Lots of consideration is placed on DeepSeek and Adam had the early scoop final week already right here: China’s DeepSeek might have simply upended the economics of AI

That is resulting in a broader fallout amongst chipmakers now as traders decide up on the event because the weekend. S&P 500 futures are actually down 2.four% on the lows for the day with Nasdaq futures down four.2%. It is a massacre on the market. In the meantime, Dow futures are down zero.9% at the moment.

The flight to security is main 10-year Treasury yields down over 9 bps to four.524% and USD/JPY down over 1% now to check 154.00 on the break of the 155.00 stage earlier. The buck was the lead gainer in Asia buying and selling however has surrendered a piece of its positive factors throughout European morning commerce.

EUR/USD has turned issues round from 1.0460 to 1.zero500 now whereas GBP/USD is up from 1.2430 to 1.2500 on the session. USD/CHF has additionally dropped from zero.9060 to zero.8995 now because the equities selloff can be lighting a bid within the franc.

Going again to US shares, the S&P 500 might have touched a document excessive final week however appears to be like poised to erase the entire positive factors then on the open right this moment. On the chart, it is going to nonetheless appear like a blip however maybe this might sign the beginning of a extra significant retracement/correction after all of the frothiness in 2024.

This text was written by Justin Low at www.ubaidahsan.com.



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