Wall Street closed in the red on Feb 27 as investors grappled with lofty technology valuations and lingering uncertainty over the broader impact of artificial intelligence (AI).
Reuters reported that the benchmark S&P 500 fell 0.43%, the Dow Jones Industrial Average dropped 1.05% and the Nasdaq Composite slid 0.92%, as semiconductor stocks retreated from recent highs.
Shares of Nvidia, the world’s most valuable company and a bellwether for the AI trade, fell 3.5%, extending losses from the prior session despite posting better-than-expected earnings. The Philadelphia Semiconductor Index declined 1.2%.
Globally, the MSCI All Country World Index slipped 0.25% on the day but still posted a weekly gain of 0.35%, while Europe’s STOXX 600 edged up 0.11%.
US Treasury yields fell as investors sought safety, with the 10-year yield down 6.3 basis points (bps) to 3.96%, and the two-year yield also falling 6.3bps to 3.385%. Germany’s 10-year Bund yield slipped 1bps to 2.644%.
In currency markets, sterling eased 0.07% to US$1.3447 after Britain’s Labour Party suffered an election setback in Greater Manchester. The dollar index was little changed, down 0.06% at 97.67, while the euro rose 0.14% to US$1.1813. The yen pared earlier gains to trade at 156.18 per dollar following softer Japanese inflation and factory output data.
Safe-haven demand lifted precious metals, with spot gold climbing 1.5% to US$5,263.59 an ounce and silver surging 6.1% to US$93.74.
Investors now turn their focus to further developments in AI-driven earnings momentum and geopolitical negotiations, both of which are likely to steer market sentiment in the weeks ahead.
