With a broad sell-off in AI and semiconductor stocks weighing on the US market, NVIDIA bucked the trend and rose after announcing an expansion of its share-buyback authorization. Japanese stocks are also reassessing buying opportunities on pullbacks in AI and semiconductor stocks in response to oil and interest-rate trends.
In US equity trading at the start of the week, AI and semiconductor stocks were sold amid concerns about delays in AI development, while NVIDIA bucked the trend and rose after adding to and expanding its share-buyback authorization, it was reported.
Following an announcement that OpenAI had temporarily suspended the training, evaluation and inference of its highest-performance model families, the buying case for AI-related stocks receded, it was reported. Growing concerns about delays in the pace of AI development were cited as a factor.
Crude oil futures rose, with the front-month WTI contract briefly reaching $96.53 and settling 0.2% above the previous Friday at $92.60, it was reported. Developments involving intermediary countries and difficulties in negotiations between the United States and Iran were viewed as factors.
The US 10-year Treasury yield remained broadly around 5.23%, while 30-year and 5-year yields also rose, it was reported. As expectations for Federal Reserve rate hikes strengthened, the probability of a hike based on CME FedWatch was expected to remain high.
Dollar/yen is expected to remain caught between expectations of a widening US-Japan interest-rate differential and caution over yen-buying intervention, with volatile price movements anticipated. At the same time, the outlook points to a range-bound market with a strong sense of stagnation in trend formation.