Kamal Ghorui
Asian markets are mostly down on Friday as concerns about AI investments grow. Tech stocks took a hit, while gold and silver prices dropped from their record highs. Oil prices also fell as tensions between the US and Iran showed signs of easing. The market’s ups and downs this week were influenced by various factors, including a weaker dollar and Donald Trump’s threats against Iran.The tech sector’s earlier optimism about AI, boosted by strong earnings from Meta, Samsung, and SK hynix, took a downturn after Microsoft’s announcement. The company revealed plans to increase AI infrastructure spending, which worried investors about delayed returns on investment. This news had a significant impact on Microsoft’s stock.“Microsoft suffered its worst session since the Covid‑era crash, falling 12 percent and accounting for over two‑thirds of the S&P 500’s decline,” said National Australia Bank’s Rodrigo Catril, as quoted by AFP. He pointed out that investors were worried about rising costs and slower growth in cloud services.Most Asian markets struggled, with Hong Kong and Shanghai dropping more than 1%. Tokyo, Sydney, Singapore, Taipei, and Manila also fell, while Seoul and Wellington saw some gains. Jakarta continued to face challenges after MSCI raised concerns about ownership issues.Indian markets also opened at a low. While Nifty50 went below 25,300, BSE Sensex was down over 500 points. At 9:16 AM, Nifty50 was trading at 25,274.65, down 144 points or 0.57%. BSE Sensex was at 82,056.49, down 510 points or 0.62%.Gold prices retreated to around $5,200 per ounce after hitting $5,595, while silver dropped to $110 from its peak of over $121. The slight increase in the dollar value contributed to this decline, despite Trump’s apparent comfort with a weaker US currency.Oil markets remained volatile, with prices falling more than 1% after Thursday’s 5% surge. This came as Trump warned Iran about possible strikes while sending military forces to the region. However, fears persist about potential conflicts in the oil-rich area, which could drive up prices and inflation.The overall market sentiment reflects caution about tech valuations and concerns about possible market bubbles, as stocks have reached record highs in recent years largely due to tech sector growth.
