Global Stocks, Oil, and Precious Metals Plunge Amid Tech Fears and Market Volatility

Global financial markets opened the week on a turbulent note as stocks, oil, and precious metals plunged, extending the volatility that shook investors at the end of last week. Concerns over high valuations in the technology sector resurfaced, reigniting fears of a potential tech bubble after last year’s record highs. Traders around the world reacted cautiously, closely monitoring earnings reports, geopolitical developments, and the possibility of future US interest rate cuts.

The technology sector was particularly hard-hit after Microsoft announced a significant increase in AI-related spending, fueling worries that companies may take longer than expected to see returns on these investments. Key Asian markets reflected the pressure, with Seoul dropping over five per cent—SK hynix losing eight per cent and Samsung falling more than five per cent. Tokyo, Taipei, and other major financial hubs also reported declines as investors reassessed the sector’s rapid growth.

Indonesia’s Jakarta Index fell more than five per cent after concerns over stock ownership and possible reclassification from emerging to frontier market triggered uncertainty among foreign investors. Other global indices, including Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila, and Bangkok, also experienced significant losses, highlighting the widespread nature of the sell-off.

Oil prices dropped sharply following easing tensions between the US and Iran, with both West Texas Intermediate and Brent crude falling more than four per cent. A stronger US dollar, driven by President Trump’s appointment of Kevin Warsh as the next Federal Reserve Chair, further pressured commodities priced in dollars. Traders anticipate that Warsh’s hawkish reputation could influence monetary policy and support the dollar, leading to additional pressure on gold, silver, and other precious metals.

Precious metals experienced dramatic losses, with gold dropping as much as six per cent to $4,586 and silver dipping nearly 11 per cent to $75, down from record highs hit last week. Analysts say the combination of tech sector caution, geopolitical developments, and a stronger dollar is driving the current market turbulence, leaving investors cautious as they navigate one of the most volatile starts to the year in recent memory.

source: punch