Global Markets and Oil Prices Experience Declines
NEW YORK, June 26 (Reuters) – Global stock markets dipped on Friday, adding to a weekly decline as investors took profits from a surge in technology and semiconductor stocks. Oil prices also fell as more tankers departed the Strait of Hormuz, easing some supply concerns.
On Wall Street, all three major indexes closed slightly lower amid volatile trading. Declines in industrial, technology, and energy sectors outweighed gains in healthcare and real estate.
While the S&P 500 and Nasdaq reported weekly losses, the Dow appeared to be on track for a slight gain.
Chip stocks saw a notable decline of 5.3%, marking a weekly drop of 7.7%, the largest decline since March 2025.
The Dow Jones Industrial Average slipped by 0.09%, the S&P 500 decreased by 0.05%, and the Nasdaq Composite fell by 0.24%.
Mark Hackett, chief market strategist at Nationwide, commented, “This reflects a necessary and healthy consolidation period following the historic rally since March, alongside a significant shift away from technology.” He added that the decline has been modest considering the overall circumstances, and with strong fundamentals, it’s likely stocks will rebound once this consolidation phase is over.
Concerns surrounding structural inflation have emerged, particularly due to heavy spending by AI companies and limited access to key tech components.
In Europe, stock markets dropped nearly 0.7%, with tech stocks falling by 1.17%.
The MSCI Asia ex-Japan stock index fell nearly 3%, and South Korea’s KOSPI dropped by 5.8%.
The MSCI global stock index recorded a 0.53% decrease, leading to a 2% decline for the week overall.
Oil Prices Decline
Oil prices decreased as more tankers left the Strait of Hormuz, alleviating some supply worries, despite an incident where a cargo ship was hit near Oman on Thursday.
Saudi Aramco resumed loading crude at its Ras Tanura terminal after a nearly four-month suspension, as per shipping data from LSEG.
Brent crude oil futures settled at $72 per barrel, down 4.34%.
Currency Movements
The yen remained around 161.76 against the dollar, close to a 40-year low, surpassing the 160 mark which many consider a critical threshold for Japanese authorities.
The euro slightly increased by 0.14% to $1.1385 but was likely to see a second consecutive weekly drop against the dollar.
Although the dollar index fell by 0.16% to 101.35, it was on track for its second week of gains against other currencies.
In the bond market, US Treasury yields declined. The benchmark 10-year Treasury yield fell by 1.16 basis points to 4.38%, while the two-year yield, often aligned with Federal Reserve interest rate expectations, decreased by 2.48 basis points to 4.096%.
Spot gold rose by 1.06% to $4,068.72 per ounce.
