Nasdaq leads stock declines as dollar approaches weekly loss
European shares rose despite U.S. technology-sector weakness, while G7 government bonds were poised for their best week since late May.
Technology losses weigh on global stocks as dollar slips
CoreWeave fell 13% amid scrutiny of AI financing, while Indonesian equities suffered their steepest decline since 1998 following an MSCI decision.
The MSCI World Equity Index dropped 0.54% on October 16 as U.S. technology stocks retreated, leaving the global benchmark facing a weekly decline. The dollar also fell, putting it on course to end four consecutive weeks of gains.
U.S. losses reached 2.3% for the Nasdaq Composite and 1.3% for the S&P 500. The Dow Jones Industrial Average declined 0.57% after surrendering earlier gains. Unlike the other two indexes, the Dow remained on course to finish the week higher.
Technology and communication services stocks led the retreat, with investors questioning debt-backed spending on artificial intelligence infrastructure. CoreWeave dropped 13%, taking its prospective weekly loss to nearly 26%. Utilities and energy led sector gains.
European equities moved higher: the STOXX 600 advanced 0.72%, while Britain's FTSE 100 added 0.38%. Most Asian markets gained, but Indonesian stocks recorded their sharpest fall since 1998. MSCI said Indonesia no longer qualified for emerging-market status and planned its removal from major indexes followed by funds.
A 0.21% decline in the dollar index left it heading for a weekly loss. The euro strengthened 0.1% to $1.12315, while Japan's yen eased 0.03% to 158.05 per dollar.
Treasury yields reversed an earlier fall, with the U.S. 10-year benchmark rising 2.13 basis points to 5.108%. Germany's 10-year yield increased 4.36 basis points to 3.453%. Despite those moves, G7 government bonds were heading toward their best week since late May as investors sought safety amid concerns over AI companies' finances.
Supply concerns in the Middle East accompanied a 3.72% rise in Brent crude futures, which settled at $109.86 a barrel. Brent was poised for another weekly advance, its second in succession. Gold increased 0.25% to $4,159.69 an ounce as the dollar weakened.