Markets Overview
- ASX SPI 200 futures up 0.3% to 8,913.00
- S&P 500 down 0.5% to 6,940.61
- Dow Average down 0.1% to 48,944.21
- Aussie down 0.2% to 0.7030 per US$
- US 10-year yield fell 1.8bps to 4.2254%
- Australia 3-year bond yield rose 1.1 bps to 4.27%
- Australia 10-year bond yield rose 2.1 bps to 4.84%
- Gold spot down 2.0% to $5,309.68
- Brent futures up 3.5% to $70.77/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$1 Billion 4.25% 2036 Bonds on Jan. 30
- 11:30: (AU) Dec. Private Sector Credit MoM, est. 0.6%, prior 0.6%
- 11:30: (AU) Dec. Private Sector Credit YoY, prior 7.4%
- 11:30: (AU) 4Q PPI YoY, prior 3.5%
- 11:30: (AU) 4Q PPI QoQ, prior 1.0%
Wall Street saw a sharp bounce from session lows as dip buyers stepped in following a slide driven by concerns over whether the unprecedented spending on artificial-intelligence will justify all that capital. Big moves in commodities saw gold plunging as oil soared. Bitcoin dipped below $85,000.
Gains in economically sensitive shares almost erased the drop in the S&P 500, which earlier sank as much as 1.5%. Meta Platforms Inc.’s solid outlook eased worries about its spending plans. Microsoft Corp. tumbled the most since 2020 on concern it could take a while for AI investments to pay off. In late hours, Apple Inc. posted strong results. Amazon.com Inc. was said to be in talks to invest as much as $50 billion in OpenAI.
“This appears to be a classic buying opportunity,” said Louis Navellier at Navellier & Associates. “We’re already seeing a bounce off the bottom in all the major indexes. Volatility is clearly higher, but the trend is nevertheless still positive.”
Wall Street is gearing up for a borrowing bonanza to bankroll AI projects that could push February corporate bond sales to a record, despite complacency warnings. International Business Machines Corp. sold dollar and euro bonds, kicking off what’s expected to be a flood of borrowing from the tech sector in 2026.
The “Magnificent Seven” tech giants have led the stock market higher for much of the past three years. But that reversed at the end of 2025 as Wall Street grew skeptical of the hundreds of billions of dollars the companies are spending to develop AI and when the returns on those investments will materialize.
“The one-way bet on AI leadership is now starting to look overcrowded,” said Fawad Razaqzada at Forex.com. “There is now some fear creeping into investors’ minds that the AI theme may not be as immediately lucrative as hoped.”
Still, all is not lost, he noted. The fact that the Nasdaq is easing back from elevated levels is a clear sign “it is far too early to talk about the peak in tech,” Razaqzada said.
The day after the Federal Reserve decided to stand pat saw an uneventful batch of economic data. President Donald Trump said he would announce his nominee to chair the Fed “next week,” and reiterated his expectation that the central bank’s new leader will lower interest rates.
The S&P 500 fell 0.1%. The Nasdaq 100 slipped 0.5%. The Russell 2000 was little changed. The yield on 10-year Treasuries slid one basis point to 4.23%. The dollar barely budged while still heading for its worst month since the April tariff-fueled meltdown.
Gold reversed an earlier rally that took the precious metal to a record above $5,500. Brent crude settled above $70 as Trump warned Iran to make a nuclear deal or face military strikes.
