AI stocks lead global markets lower after reports of a Peter Thiel fund's full NVIDIA exit. Alphabet's surge on a Berkshire Hathaway bet fails to counter selling pressure across US and Asian indices, with the yen and gold reflecting caution.
Global stocks wobbled, Nasdaq 100 testing key support, Japanese yen’s weakness stalls, gold remains lacklustre
Key takeaways
- US tech and AI stocks dragged markets lower, with Nvidia-related sentiment hit after reports of a full exit from Peter Thiel’s hedge fund. Alphabet’s 3% surge on Berkshire’s US$4.9B bet failed to revive broader risk appetite.
- Global equities turned risk-off, with Japan’s Nikkei 225 plunging 3% and Hong Kong’s Hang Seng down 1.9%. Singapore’s STI also slipped but continues to hold above key 20-day support.
- FX and commodities reflected caution, as yen rebound fears tied to potential intervention pressured the USD, while gold extended its decline after breaking below its 20-day moving average.
The US stock market opened the week on its back foot as semiconductor and AI hardware stocks came under heavy pressure. Sentiment soured after reports revealed that Peter Thiel’s hedge fund, Thiel Macro LLC, had fully exited its NVIDIA position in the third quarter, sparking a wave of negative reflexivity across the sector.
Even a standout 3% intraday surge in Alphabet, buoyed by a rare US$4.9 billion tech wager from Warren Buffett’s Berkshire Hathaway, was not enough to reignite bullish sentiment across US technology stocks.
The S&P 500 ended Monday, 17 November, with a loss of 0.9% and closed below its 50-day moving average for the first time since 30 April 2025. The tech-heavy Nasdaq 100 dropped by 0.8% to 24,800 and is looking to retest its key medium-term support at 24,635.
In today’s Asia session, Asia Pacific stock markets have also caught the “bearish flu bug”, without any clear fundamental drivers. All the major benchmark stock indices wobbled; Japan’s Nikkei 225 tumbled by 3%, its worst daily performance since 7 April 2025. Hong Kong’s Hang Seng Index extended its decline for the third consecutive session with a loss of 1.9%.
Even the defensive, high-dividend Singapore Straits Times Index wasn’t immune to the risk-off spillover, slipping 0.8% intraday to 4,507. Despite the pullback, it remains above its 20-day moving average, which continues to serve as key intermediate support at 4,470.
In the FX market, the US dollar pared back its overnight gains, with the US Dollar Index declining slightly by 0.04% in today’s Asian session at the time of writing. The current intraday weakness of the greenback has been led by the Japanese yen, which rallied by 0.1% after it hit a 10-month low of 155.38 per US dollar.
The current bounce in the Japanese yen price has been attributed to fears of FX intervention following verbal warnings from Japan’s Finance Minister regarding rapid, one-sided yen depreciation and a high-stakes meeting between BoJ Governor Ueda and Prime Minister Takaichi later today at 3.30 p.m. local time in Japan.
Gold (XAU/USD) continues its descent after a bearish breakdown below its 20-day moving average at US$4,036. The yellow metal is down for the fourth consecutive day with an intraday loss of 0.7% to trade at US$4,016 at the time of writing.
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