US stock markets closed lower with the Nasdaq dropping 1.5%, influenced by escalating tensions in the Middle East, which also drove up oil prices. In contrast, Chinese e-commerce stocks saw significant gains. Alibaba (BABA, Financial) surged 6.2% and Pinduoduo (PDD) jumped 8%, contributing to a 5.48% rise in the Nasdaq Golden Dragon China Index (HXC).
WTI crude oil prices increased by 2.4% due to the Middle East conflict, while spot gold prices rose over 1%, reflecting heightened demand for safe-haven assets. Major European stock indices mostly declined, with the Euro Stoxx 50 Index falling 1.21%.
On the macroeconomic front, US manufacturing activity contracted for the sixth consecutive month, while the price index fell to its lowest level of the year. Job openings in the US unexpectedly climbed to a three-month high, surpassing economists' predictions.
Several other noteworthy developments included Nike's underwhelming revenue which caused post-market stock price drops and Apple (AAPL) preparing a more affordable iPhone SE 4 for release next year. Additionally, OpenAI announced significant cost reductions in its models and introduced AI voice features for apps. Microsoft is projecting over $100 billion in leasing costs for its extensive AI data centers, potentially impacting profit margins.
Tesla (TSLA) is expected to report its first quarterly sales growth of the year, and Boeing (BA) is considering raising at least $100 billion through a stock offering. Meanwhile, Apple shares declined as analysts continued to monitor early demand signals for the new iPhone models.
