The US stock market experienced a decline on Thursday, with the tech-heavy Nasdaq taking a hit due to a shakeout in US semiconductor stocks. This downturn was attributed to AI jitters spreading globally. However, solid US economic data helped to lift the dollar and Treasury yields.

Economic Data and Market Moves

The US chip index fell by 4%, with companies like Sandisk and Seagate Technology experiencing significant losses. In contrast, consumer staples saw a 3% increase. The dollar rose by 0.3%, while sterling fell by 0.5%. US yields also saw an increase of 3 basis points at the short end, leading to a bull-flattening of the curve.

Oil prices decreased by 1%, and gold fell by 2%. The US natgas price hit a 2-month low of $2.823/mmBtu. These market moves were influenced by various factors, including the latest economic data and developments in the tech industry.

Global Market Trends

South Korea’s stock market experienced significant volatility, with the KOSPI index seeing a 30-day realized volatility higher than any point on record apart from late 1998. Foreign investors are selling at the fastest rate in 25 years, leading to concerns about the market’s stability.

In Europe, the market was relatively unchanged, while Wall Street’s big three indices slid between 0.2% and 1.5%. The global market trends are being closely watched, as they can have a significant impact on the US economy and stock market.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.