Dell takes a tumble and Oil edges lower
Tech worries continue to beset markets, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
AI fears hit tech names
Another day of AI worries has hit markets, as Dell becomes the latest to suffer a super-sized loss. While the Dow continues its recovery off yesterday’s lows, supported by recent bank earnings and weaker US inflation, the Nasdaq continues to struggle, as does its companion the Nikkei 225. Both have ridden the wave of AI enthusiasm, but now that trade seems buffeted by uncertainty and at risk of more declines. This is still more like rotation between sectors but it certainly doesn’t bode well for the summer.
Oil edges lower despite expectations of further action
The oil surge has calmed again today, but there is little likelihood of any return to real peace talks in the Middle East. The Straits of Hormuz remain closed, and energy stockpiles are still too low for comfort. The doomsayers in oil markets have been right to warn of a fresh energy crisis, even if stock markets don’t seem to be that concerned right now.
Author
Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.
