Market Summary - February 24, 2026

The financial markets are currently experiencing a notable shift as the recent AI-driven "scare trade" appears to be cooling. This trend has led to a significant sell-off in risk assets, particularly in the US markets, where the Dow Jones Industrial Average (DJIA) dropped over 1.65% and the Nasdaq 100 fell by 1.2% during the previous trading session.

Key Market Movements

• Gold: Currently priced at 5144.72, down 1.59%.
• US Software Stocks: Experienced a sharp decline, with IBM shares plummeting 11% following the announcement of new functions for Anthropic Claude.
• Asian Markets: Despite the downturn in US markets, Asian stocks showed resilience, with South Korea up 2%, Taiwan rising 2.7%, and China gaining ground after reopening from the Lunar New Year.
• Chipmakers: Traders are rotating into semiconductor stocks, viewing them as essential components of the AI supply chain, with companies like SK Hynix, Samsung, and TSMC reaching new highs.
• Precious Metals: Gold and silver prices have declined after a four-day rally, while Treasury yields have also eased as demand for safe-haven assets diminishes.
• Bitcoin: The cryptocurrency is down 2%, hovering around the $63,000 mark following the recent sell-off.

Geopolitical and Economic Factors

The market's volatility is compounded by ongoing uncertainties related to potential tariff risks associated with the Trump administration. Recent reports suggest that the administration believes China's DeepSeek has utilized Nvidia's most advanced AI chip for training its latest model, raising concerns about competitive dynamics in the tech sector.

Upcoming Economic Indicators

Market participants are closely watching the upcoming US Conference Board data and speeches from Federal Reserve members, which could provide further insights into economic conditions and monetary policy direction.

Recent Developments

• EU Trade Deal: The European Union has suspended a landmark trade deal, contributing to a 2% increase in gold prices.
• Trump's Tariffs: A recent ruling declared Trump's tariffs illegal, raising questions about potential refunds for affected companies.
• Economic Calendar: Key reports, including the US Producer Price Index (PPI) and Nvidia's earnings, are anticipated this week.

Overall, the MSCI Asia Pacific Index has managed to recover earlier losses, showing a slight increase of about 0.2%. The market remains sensitive to both technological developments and geopolitical tensions, which are likely to influence trading strategies in the near term.