Wall Street’s recent rally took a pause as the Dow Jones dropped 341 points, or 0.7%, closing at 51,179.87. The S&P 500 and Nasdaq each slid 0.2%, retreating from record highs. The pullback extended into Asia, where markets traded cautiously amid concerns over expensive oil and massive AI financing plans. The US 10-year Treasury yield hovered near 5.3%, its highest since 2002, increasing borrowing costs and making bonds more attractive than stocks.
In currency markets, the dollar index held near an 18-month high around 102.23, while the euro weakened on concerns over France’s finances. The USD/JPY pair eased toward 157.80 after Japan reported a stronger-than-expected current-account surplus. Meanwhile, Broadcom is seeking over $50 billion in financing for custom OpenAI chips, and SpaceX is discussing a $40 billion package for Nvidia purchases, highlighting the heavy reliance on external capital for AI expansion.
In commodities, Brent crude rose 1.3% to $101.53 a barrel, while WTI climbed to $89.39, as supply concerns resurfaced. Gold recovered 0.5% to around $4,130, but elevated yields remain a challenge. Bitcoin steadied near $83,300 after a 2.6% drop the previous day, with traders watching key levels at $82,800 and $85,500.
Key events today include remarks from Fed Governor Christopher Waller, PepsiCo earnings, and US jobless claims. Investors will be watching for signals on consumer spending and labor-market resilience amid tightening financial conditions.