Global equities weakened as stalled US–Iran peace talks and rising oil prices drove a risk-off shift, with a sharp software-led sell-off weighing on Wall Street. Europe followed lower amid energy-driven pressure and contracting activity, while Asia-Pacific reversed early gains on escalating tanker tensions. Earnings season added to volatility, with a deepening software slide—highlighted by ServiceNow’s worst session in a decade—amplifying sector divergence and investor caution.
Wall Street slips as software rout and rising oil weigh on sentiment
US equities declined as stalled US–Iran peace talks and a renewed surge in oil prices weighed on sentiment, while a sharp sell-off in software following earnings compounded losses. The Dow Jones fell -0.4%, the S&P 500 slipped -0.5% and the Nasdaq dropped -1.0%, with markets pulling back from record highs as geopolitical tensions intensified around the Strait of Hormuz. Software stocks led declines, with ServiceNow experiencing its worst day in a decade, plunging -17.6% and IBM falling -8.4%, dragging the broader sector lower. Microsoft (-4.3%), Salesforce (-9.0%) and Oracle (-6.1%) each fell in sympathy amid concerns over AI disruption and delayed deal activity. Texas Instruments surged +17.7% on strong guidance, while Meta (-2.5%) announced plans to cut around 10% of its workforce as it ramps AI investment. Netflix slipped -0.2% after authorising a US$25bn share buyback while Tesla (-3.9%) reversed earlier gains to trade lower following its earnings release. Macro data remained resilient, with PMI readings beating expectations and jobless claims rising to 214,000, pointing to a still-stable labour market. The US 2-year yield and 10-year yield rose +3bp each to 3.825% and 4.325% respectively.
European equities mixed as rising oil and earnings weigh on sentiment
European equities edged lower as rising oil prices and escalating tensions in the Middle East weighed on sentiment, with both Iran and the US targeting commercial vessels. The STOXX 600 rose +0.1%, with France’s CAC 40 up +0.9%, while Germany’s DAX and the UK’s FTSE 100 fell -0.2%. PMI data indicated Eurozone economic activity contracted as higher energy prices fed through. L’Oréal surged +9.0% on its fastest quarterly growth in two years, while Siemens Energy gained +5.7% after lifting its outlook on AI-driven power demand. EssilorLuxottica fell -4.8% on slowing revenue growth, and SAP dropped -5.6% ahead of earnings.
Asia-Pacific markets reverse as tanker seizures offset early optimism
Asia-Pacific markets gave up early gains to close mostly lower as reports of US interception of Iranian oil tankers heightened concerns the conflict could extend. Japan’s Nikkei 225 fell -0.7%, despite manufacturing activity expanding at its fastest pace in four years, while South Korea’s KOSPI rose +0.9% after stronger-than-expected GDP growth of +1.7%. China’s Shanghai Composite declined -0.3% and Hong Kong’s Hang Seng fell -0.9%. Australia’s ASX 200 dropped -0.6%, weighed by broad-based weakness with Cochlear down -4.6%, extending its two-day decline to -43.0%. New Zealand’s NZX 50 fell -0.5%, dragged lower by Fisher & Paykel Healthcare (-2.9%) amid healthcare weakness from across the ditch.
Oil rises again while gold falls
WTI Crude added +3.4% to US$96.11/bbl, Brent Crude rose +3.2% to US$105.21/bbl, while Gold slipped -0.9% to US$4,696.39/oz.
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