Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Australia Jobs Growth Strengthens Rate Hike Outlook 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Wall Street futures edged higher on Thursday evening after a turbulent trading day marked by deep losses across major indexes. The rebound came as markets attempted to steady themselves following a sharp reversal in Nvidia’s stock, which had initially surged on strong quarterly earnings before sentiment soured. The tech giant’s slump amplified broader concerns about lofty valuations in the artificial intelligence sector, fueling fears of a growing AI bubble.
NVIDIA Corporation (NASDAQ: NVDA) slipped another 0.2% in after-hours trading, extending the 3.1% loss seen earlier in the session. Despite reporting solid top- and bottom-line results, investors reacted negatively to rising inventory levels and management commentary that failed to ease worries surrounding AI-driven demand. Investor Michael Burry, known for forecasting the 2008 financial crisis, added pressure by arguing that true demand for AI technology is far lower than current market valuations suggest. Nvidia’s dramatic swing wiped out nearly $400 billion in market value, underscoring the heightened volatility in the tech sector.
Losses were not limited to technology stocks. Strong September payrolls data strengthened expectations that the Federal Reserve may hold off on cutting interest rates in December, weighing down multiple sectors. A resilient labor market combined with persistent inflation has reduced odds of near-term monetary easing. Fed minutes released earlier this week signaled policymakers remain divided on a potential December cut. According to CME FedWatch, the probability of a 25-basis-point cut has slipped to 31%, down from nearly 46% a week ago. Morgan Stanley analysts also withdrew their forecast for a December cut following the robust employment report.
Despite the broader market downturn, Walmart Inc. (NYSE: WMT) provided a bright spot with a 6.5% rally after posting upbeat earnings. Elsewhere, President Donald Trump’s order to lower U.S. import tariffs on select Brazilian agricultural goods lent mild support by offering potential relief for food inflation.
By 19:40 ET, S&P 500 futures rose 0.3% to 6,576.0, Nasdaq 100 futures gained 0.2% to 24,186.25, and Dow futures added 0.3% to 45,970.0.
