London/New York, Feb 28: Global equities slipped on Friday as investors reassessed lofty valuations in the technology sector and weighed the disruptive impact of artificial intelligence, while crude prices surged on geopolitical risks in the Middle East.
Market sentiment remained fragile despite strong earnings from AI chip giant Nvidia, whose shares fell 3.5%, extending previous losses. Analysts noted that semiconductor stocks which have more than doubled over the past year may be entering a consolidation phase as much of the optimism has already been priced in.
Wall Street closed lower, with the S&P 500 declining 0.43%, the Dow Jones Industrial Average falling 1.05%, and the Nasdaq Composite shedding 0.92%. Semiconductor stocks dropped 1.2% as investors locked in gains following a prolonged rally.
MSCI’s All Country World Index eased 0.25% on the day but remained higher for the week and month. In Europe, the STOXX 600 edged up 0.11%, offering limited support to broader global sentiment.
Oil Rises on US-Iran Developments
Oil markets moved higher as traders monitored ongoing nuclear discussions between Washington and Tehran. While Omani mediators described recent talks as constructive, no breakthrough has been confirmed. US President Donald Trump signaled dissatisfaction with Iran’s stance, warning that force could be used if negotiations fail.
Brent crude climbed 2.45% to settle at $72.48 per barrel, while US crude gained 2.78% to close at $67.02.
Bonds, Currencies and Metals
In fixed income markets, US Treasury yields declined, with the 10-year yield falling to 3.96% and the two-year note easing to 3.385%. Germany’s 10-year Bund yield also edged lower.
Currency markets were relatively stable. Sterling slipped slightly after political developments in the UK, while the Japanese yen gave up earlier gains following mixed economic data from Tokyo. The dollar index dipped marginally, and the euro strengthened modestly.
Precious metals rallied, with gold rising 1.5% and silver jumping over 6%, reflecting heightened investor caution.
The broader picture shows global stocks fall on AI concerns while geopolitical tensions continue to influence energy and safe-haven markets.