Welcome to Tuesday. After yesterday’s dramatic sell-off in tech stocks, particularly those linked to the AI industry, markets are starting to stabilize. Monday saw a sharp drop in the NASDAQ and other major U.S. indices, sparking fears of a broader downturn. However, the impact appears to be largely contained, as European markets have shown resilience, experiencing only a minor correction. In fact, Europe is behaving impressively well under the circumstances, with market sentiment remaining generally positive.
In the currency market, the American dollar, Canadian dollar, and Swiss franc are standing strong, reflecting a shift toward safer assets in the wake of Monday’s turbulence. Meanwhile, at the other end of the spectrum, the AUD and NZD are among the weakest performers, showing vulnerability amid this period of uncertainty.
The commodities sector is also experiencing notable movements. Oil prices are climbing, showing strength as demand expectations remain firm. In contrast, metals markets are extremely volatile, with silver struggling to find a clear direction, oscillating sharply between gains and losses. This uncertainty reflects the broader indecision gripping the markets following Monday’s events.
Earnings season is heating up in the U.S., with results from key players like Boeing and Lockheed Martin released before the market opened today. Boeing disappointed with its earnings, yet paradoxically, its stock is trading 5% higher as the market looks beyond the immediate miss to future prospects. Conversely, Lockheed Martin reported mixed results, which led to a 5% drop in its stock price.
The main narrative today revolves around the potential recovery of U.S. tech stocks. Investors are watching closely to determine whether Monday’s plunge marked the start of a broader negative trend for the sector or if it was simply a one-off event driven by heightened fears in the AI space. As the dust settles, today’s trading session will provide important clues about market sentiment and the durability of the sell-off.
Tuesday has opened with cautious optimism in Europe and a mixed picture in the U.S. markets. Strength in oil, volatile metals, and a divided currency market add to the complexity of the current environment. All eyes are on the U.S. tech sector to see whether it can rebound or if yesterday’s drop signals a more sustained bearish trend. Stay tuned as the session progresses, with earnings reports and tech sentiment taking center stage.