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US 10 year yield tops 5% | AI stocks slide after slowdown calls| Coforge in focus | Opening Bell
US indices slid 0.3-0.5% amid inflation and AI-related concerns, while Brent crude touched $109 a barrel after Saudi Arabia shut its East-West pipeline. Reports also indicated that the Houthis took control of Perim Island in the Bab el-Mandeb Strait, adding to concerns over global oil supplies and shipping routes. US August CPI rose 3.4% year-on-year, in line with estimates, while the 10-year Treasury yield touched 5% on Monday before retreating slightly. CME FedWatch indicated a 90% probability of a Fed rate hike this week. Global technology stocks were rattled by developments around AI, with Anthropic CEO Dario Amodei calling for a slower pace of AI development in a blog post, a position supported by Sam Altman and Elon Musk. Altman also said an OpenAI IPO this year would be “ill advised.” Chip and semiconductor stocks came under pressure, with Micron falling 5.25%, AMD 4.4%, Broadcom 4.8%, Marvell 7.3%, Nvidia 3.3% and ARM Holdings 9.7%. In contrast, cybersecurity stocks such as CrowdStrike and Palo Alto Networks surged 13-15%. Asian markets traded mixed, while Gift Nifty indicated a mildly positive start for Indian equities. The Indian market ended its fifth straight week of losses, marking its longest losing streak in 14 months. The Sensex and Nifty fell around 2% each last week, while the Midcap index declined 1%. The Nifty recovered from Friday’s lows to close at 23,398. FIIs remained net sellers, offloading ₹930.90 crore of equities, while DIIs were net buyers with purchases worth ₹1,968.17 crore. On the domestic inflation front, August CPI inflation came in above estimates at 4.82% versus 4.45% previously, while core CPI rose to 4.2% from 3.9%. August WPI inflation stood at 9.92% versus 9.78%, food inflation rose to 7.05% from 6.65%, and fuel and power inflation increased to 22.93% from 20.05%.
US 10 year yield tops 5% | AI stocks slide after slowdown calls| Coforge in focus | Opening Bell
US indices slid 0.3-0.5% amid inflation and AI-related concerns, while Brent crude touched $109 a barrel after Saudi Arabia shut its East-West pipeline. Reports also indicated that the Houthis took control of Perim Island in the Bab el-Mandeb Strait, adding to concerns over global oil supplies and shipping routes. US August CPI rose 3.4% year-on-year, in line with estimates, while the 10-year Treasury yield touched 5% on Monday before retreating slightly. CME FedWatch indicated a 90% probability of a Fed rate hike this week. Global technology stocks were rattled by developments around AI, with Anthropic CEO Dario Amodei calling for a slower pace of AI development in a blog post, a position supported by Sam Altman and Elon Musk. Altman also said an OpenAI IPO this year would be “ill advised.” Chip and semiconductor stocks came under pressure, with Micron falling 5.25%, AMD 4.4%, Broadcom 4.8%, Marvell 7.3%, Nvidia 3.3% and ARM Holdings 9.7%. In contrast, cybersecurity stocks such as CrowdStrike and Palo Alto Networks surged 13-15%. Asian markets traded mixed, while Gift Nifty indicated a mildly positive start for Indian equities. The Indian market ended its fifth straight week of losses, marking its longest losing streak in 14 months. The Sensex and Nifty fell around 2% each last week, while the Midcap index declined 1%. The Nifty recovered from Friday’s lows to close at 23,398. FIIs remained net sellers, offloading ₹930.90 crore of equities, while DIIs were net buyers with purchases worth ₹1,968.17 crore. On the domestic inflation front, August CPI inflation came in above estimates at 4.82% versus 4.45% previously, while core CPI rose to 4.2% from 3.9%. August WPI inflation stood at 9.92% versus 9.78%, food inflation rose to 7.05% from 6.65%, and fuel and power inflation increased to 22.93% from 20.05%.
