Global Markets Weighed by AI Concerns, Oil Prices

AI Safety Alarms Rattle Chip Stocks Worldwide

Semiconductor and AI-focused companies bore the brunt of selling pressure as industry titans urged the world to slow down. Nasdaq reported the Nasdaq 100 Index hit a six-week low. Investors grew nervous that relentless AI development could trigger unforeseen risks. Software firms like Sage Group, RELX, and Experian outperformed chip makers, signaling a shift toward companies seen as less exposed to the capital-heavy AI race.

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European Markets Slide While London Software Stocks Gain

The Stoxx Europe 600 Index fell 0.5% as oil and AI concerns spread across the continent. London's FTSE 100 bucked the trend, rising 0.4%, buoyed by software and financial-data plays. Euronext and Deutsche Boerse also climbed after Euronext CEO Stéphane Boujnah signaled openness to a merger. European natural-gas futures shot up nearly 6% to €84.20 per megawatt-hour, raising fears of renewed inflation across the eurozone.

ECB officials warned of the energy price spike. Governing Council member Peter Kazimir cautioned that eurozone inflation could overshoot expectations. Executive Board member Isabel Schnabel voiced similar concern about the hit to household and business budgets from higher energy costs.

Oil Supply Crisis Sends Crude Toward $104 Per Barrel

Saudi Arabia's East-West pipeline shutdown could wipe out as much as 4% of global oil supply. Oil inventories at the export port of Yanbu cover only five to seven days of operations. With a planned regional meeting on Strait of Hormuz security postponed, traders priced in prolonged supply disruption. WTI crude surged toward $104 a barrel, while Brent topped $109 a barrel.

Asia's Mixed Performance Masks Growing Inflation Jitters

Asian markets showed sharp splits. South Korea's Kospi dropped sharply, while Hong Kong's Hang Seng gained 0.45% and Australia's S&P/ASX 200 rose 0.10%. Shanghai's Composite slipped just 0.07%, and New Zealand's NZX 50 fell 0.14%. Across the region, investors fretted that sustained oil prices could reignite inflation and force central banks to keep rates higher for longer, squeezing corporate profits and household spending power.