Rolling coverage of the latest economic and financial news
The rout in AI stocks also followed a report by the Information that China has begun mass production of homegrown deep ultraviolet, or DUV, chipmaking tools.
Jing Jie Yu, an equity analyst at Morningstar, said:
We believe the market was likely spooked by the progress of China’s chipmaking equipment capabilities, and was worried that this progress would threaten the competitive position of global chipmaking and chip equipment leaders.
That said, we believe the sell-off today is largely a knee-jerk reaction and overdone.
This meant that the S&P 500 (+0.02%) and Nasdaq (-0.16%) were little changed yesterday after an initial rally, whilst the Philly Semi Stock Exchange Index (-2.23%) fell further. The equity performance also wasn’t helped by new highs in real yields, though nominal 10yr Treasury yields (-2.8bps) came down as Brent crude fell -8.70% yesterday, in its largest decline since April. It is an additional -2.0% lower this morning, trading at $86.59/bbl, after being at $101 on Friday morning. S&P 500 (-0.22%) and Nasdaq (-0.74%) futures are lower this morning.
7am BST: Barclays half year results, Unilever half year results, GSK second quarter earnings, Games Workshop full year results
Today: Tate & Lyle holds a general meeting in London for shareholders to vote on proposed acquisition by Ingredion
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Rolling coverage of the latest economic and financial newsThe rout in AI stocks also followed a report by the Information that China has begun mass production of homegrown deep ultraviolet, or DUV, chipmaking tools.Ji...
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