Lisa Cook pointed to persistent inflation risks, while Kevin Warsh’s nomination as Fed chair reinforced views of tighter policy discipline. Mixed data added nuance, with weaker ADP hiring offset by firm services activity, as attention turns to upcoming ECB and BoE meetings.

Equities showed tentative stabilization after sharp technology-led losses. Alphabet slipped on higher AI spending guidance, while Nvidia and Broadcom found support. In regular trading, the S&P 500 and Nasdaq fell 0.51% and 1.51%, while the Dow rose 0.53% as flows rotated toward less stretched valuations.

AI-related volatility remained a key theme, with close to $1 trillion erased from software stocks in recent days. Cautious outlooks from Alphabet and Arm fueled concern around rapid technological disruption, with weakness spreading to financials and Asian chipmakers despite limited signs of immediate demand erosion.

Take a look at today's updates in our analysis!