Stock Markets Decline Amid Tech Weakness and Bond Selloff

Global stock markets faced broad declines on Thursday as rising bond yields, disappointing tech earnings, and trade concerns weighed on investor sentiment.

Nasdaq 100 futures dropped 1.2%, while S&P 500 futures fell 1%, signaling a weak opening for Wall Street.

The technology sector was hit hard after Marvell Technology Inc. saw its shares tumble 15% in premarket trading due to an earnings report that fell short of investor expectations. CrowdStrike Holdings Inc. also declined after issuing a weaker-than-expected earnings outlook.

Chip stocks faced additional pressure after Alibaba Group Holding Ltd. introduced a low-cost competitor to its DeepSeek AI technology, raising concerns about profit margins across the sector.

A global bond selloff extended into Thursday, further unsettling investors. Germany’s 10-year bond yield surged to 2.87%, marking its highest level since October 2023, following the government’s announcement of a large-scale spending plan. Meanwhile, US Treasury yields rose three basis points to 4.31%, and Japanese government bond yields hit their highest levels in over a decade.

Matthew Cairns, a strategist at Rabobank, pointed out that investors remain concerned about the economic impact of a potential trade war, as President Donald Trump has imposed tariffs on imports from Mexico and Canada. While automakers were granted a one-month exemption, fears of retaliatory measures and slower US economic growth are pressuring stock markets.

After starting the day with gains, Europe’s Stoxx 600 index fell 0.5%, reflecting concerns about sharply higher bond yields. Germany’s decision to increase fiscal spending triggered a historic yield spike in German Bunds on Wednesday, leading to a continued bond selloff across the eurozone.

The European Central Bank (ECB) is expected to deliver a 25 basis-point interest rate cut, but analysts remain uncertain about how policymakers will respond to rising government spending pressures.

Currency and Commodity Market Reactions

• The euro held near a four-month high, trading at $1.08.
• The British pound slipped 0.1% to $1.2880.
• Bitcoin rose 0.6% to $90,903.53, while Ether gained 2.5% to $2,290.75.
• West Texas Intermediate (WTI) crude oil increased 0.4% to $66.59 per barrel.
• Gold prices dropped 0.9% to $2,893.50 per ounce, reflecting investor moves into higher-yielding assets.

Investors will be closely watching the US jobs report on Friday, which could influence Federal Reserve interest rate expectations. Other key events include:

• Eurozone GDP report on Friday
• Fed Chair Jerome Powell’s speech in New York on Friday
• ECB interest rate decision on Thursday

Bloomberg and CNBC contributed to this report.