By B.V. Phani Kumar
- protests drawing international commentary on the scale of youth participation and the government’s security response.
- Global equity markets remained volatile as investors reassessed the sustainability of the artificial-intelligence investment rally, with semiconductor and technology shares under particular pressure during the week.
- United States inflation data showed price pressures spreading beyond energy, keeping financial markets alert to the possibility of a further interest-rate increase by the Federal Reserve.
- Federal Reserve Chair Kevin Warsh said the US economy remained resilient and was benefiting from AI-led investment, while avoiding any clear signal on the central bank’s next policy move.
- Oil prices stayed elevated amid continuing concern over Middle East supply routes and attacks affecting regional energy infrastructure, though a fall of nearly one per cent on Friday offered temporary relief to markets.
- Brent crude remained above 100 dollars a barrel, sustaining worries that high energy costs could feed into broader inflation and weaken consumer demand.
- Asian markets showed a partial recovery after a sharp technology-led selloff, with South Korea’s KOSPI rising more than three per cent after dropping almost eight per cent in the previous session.
- The Philadelphia Semiconductor Index had recorded seven consecutive daily declines through Thursday, underlining the depth of concern around AI-linked valuations and funding costs.
- The International Monetary Fund highlighted risks arising from complex financing structures within the AI sector, warning that higher borrowing costs could expose vulnerabilities in the technology investment cycle.
- The United Nations trade body projected global economic growth to slow to 2.6 per cent in 2026, down from 2.9 per cent in the previous year, citing the energy shock linked to the Middle East crisis.
- Asia was projected to account for 59 per cent of global growth in 2026, with India expected to expand by 7.3 per cent, China by 4.5 per cent and Indonesia by 5.2 per cent.
- Wall Street ended the week mixed, with the S&P 500 and Nasdaq set for weekly losses while the Dow remained on course for a weekly gain.
- Investors rotated from high-valuation technology stocks towards defensive sectors such as healthcare, reflecting caution over earnings, interest rates and energy prices.
- The dollar’s movement remained a key market theme, as expectations around Federal Reserve policy shifted following stronger-than-expected inflation readings.
- Bond markets steadied in parts of Asia on Friday after earlier turbulence, though investors continued to watch yields closely for signs of renewed stress.
- Corporate earnings became a central focus for global investors, with mixed results from major banks adding to uncertainty about the strength of consumer and business activity.
- Tesla shares rose in a weak broader technology environment, providing limited support to sentiment in US futures trading.
- Concerns over shipping security and energy transit routes continued to influence commodity markets, with traders pricing in a risk premium for potential disruption.
- Global policymakers and market participants were watching whether elevated oil prices, tighter financial conditions and AI-sector corrections could combine to slow the world economy further.
