After enjoying too long a bullish sentiment, stock markets dumped suppliers in the artificial intelligence sector. Companies like Micron Technology (MU) abruptly shut down their consumer chip division (Crucial). It is devoting chip sales to AI server markets to maximize profits.
This creates an ongoing shortage of RAM chips. Prices are so high and in such short supply that computer repair shops get used laptops that have no memory or storage. Those cut computers are not sellable. Markets expect computer peripheral firms to suffer. Logitech (LOGI) peaked at $120 and closed at around $90. Corsair (CRSR) might retest the low for the last year.
Japan’s 40-year bond yield reached a monumental yield high. At 4%, this is a level not seen in three decades. Japan’s plans to cut the food sales tax might worsen the country’s balance sheet.
Japan’s 10-year government bond also rose. At a high not seen since 1999, the rising yields will likely decrease the attractiveness of stocks trading at stratospheric valuations
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Trump’s imposition of 10% tariffs on European countries is based on his desire to get Greenland. The mere threat of a hostile acquisition broadened Tuesday’s stock market sell-off. Asset management firms like BlackRock (BLK) and Blackstone (BX) led the decline.
Citigroup (C) declined, while in the tech sector, Oracle (ORCL), Nvidia (NVDA), Broadcom (AVGO), and Tesla (TSLA) traded lower.
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