London (AFP) – Oil prices and the dollar retreated Thursday while stock markets were mixed as traders tracked conflicting events in the Middle East war. A disappointing outlook from US chipmaker Broadcom weighed on AI stocks.
Iran reported “no tangible progress” in negotiations on ending the war, even as the US House of Representatives passed a resolution seeking to halt American military action in Iran. Israel, meanwhile, struck south Lebanon and threatened new attacks on Beirut despite an announcement hours earlier that the opposing sides had agreed to implement a conditional ceasefire.
Elsewhere, a disappointing forecast by chip giant Broadcom stoked concerns about AI stock valuations, which have soared in recent months and helped push equity indexes to record highs. Broadcom’s stock plunged around 15 percent, “reviving doubts the actual growth rates for artificial intelligence,” said John Plassard at Cite Gestion.
Investors also braced for a coming IPO by Elon Musk’s SpaceX, the rockets-to-AI behemoth that is aiming to raise $75 billion in the biggest initial share sale ever. SpaceX said in a regulatory filing that it would offer over 550 million shares at $135 each next week, which could value the company at a whopping $1.8 trillion. “Investors will be mindful of the extraordinary gains made in semiconductors over the past two months, and the upcoming SpaceX IPO which is sure to suck some money out of outperforming stocks,” said David Morrison, senior market analyst at Trade Nation.
Additionally, investors are waiting for a US jobs report due on Friday to get a reading of the performance of the economy. A separate report this week showed that despite rising energy prices, companies in the world’s biggest economy added in May the most jobs since the start of 2025.
The dollar fell against main rivals after recent gains thanks to its safe-haven status and expectations that the Fed could raise US interest rates to combat higher inflation. “Market sentiment is coming under pressure following yesterday’s pullback in US equities and the precarious nature of negotiations between the US and Iran to reopen the Strait of Hormuz,” said Neil Wilson, investor strategist at Saxo UK.
However, the greenback still managed to push Indonesia’s rupiah to a record low against the currency, with the Asian country stung by surging energy costs. Its lawmakers passed a bill expanding oversight of the central bank that raised concerns over its independence.
– Key figures at around 1345 GMT –
Brent North Sea Crude: DOWN 2.6 percent at $95.28 a barrel
West Texas Intermediate: DOWN 3.1 percent at $93.06 a barrel
New York – DOW: UP 1.2 percent at 51,289.91 points
New York – S&P 500: DOWN 0.2 percent at 7,540.28
New York – Nasdaq: DOWN 0.9 percent at 26,624.73
London – FTSE 100: DOWN 0.1 percent at 10,326.74
Paris – CAC 40: UP 1.0 percent at 8,228.73
Frankfurt – DAX: UP 0.6 percent at 24,935.67
Tokyo – Nikkei 225: DOWN 1.4 percent at 67,470.69 (close)
Hong Kong – Hang Seng Index: DOWN 1.5 percent at 25,253.40 (close)
Shanghai – Composite: DOWN 0.6 percent at 4,057.78 (close)
Euro/dollar: UP at $1.1639 from $1.1599 on Wednesday
Pound/dollar: UP at $1.3453 from $1.3420
Dollar/yen: DOWN at 159.87 yen from 160.07 yen
Euro/pound: UP at 86.54 pence from 86.43 pence
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© 2024 AFP
