The technology index NASDAQ 100 has already fallen more than 10% since the end of January. Concerns about maintaining the pace and scale of gains among companies involved in AI, or under pressure from it, have intensified in response to the conflict in the Persian Gulf. Friday’s session is starting with significant declines, with futures on the major indices down more than 1%. The biggest losses are seen in the Russell 2000, where declines are already approaching 2%.
The market is focused mainly on a growing number of negative signals from technology companies, as well as on diminishing prospects for de-escalation of the conflict in the Persian Gulf. The situation is being exacerbated by increasing uncertainty around the inflation outlook and central bank policy.
Macroeconomic data:
The University of Michigan has released its latest data on inflation expectations and consumer sentiment.
- Inflation expectations (1 year): 3.8% (expected: 3.4%; previous: 3.4%)
- Inflation expectations (5 years): 3.2% (expected: 3.2%; previous: 3.3%)
- Consumer expectations: 51.7 (expected: 54.1; previous: 56.6)
- Current conditions: 55.8 (expected: 57.8; previous: 56.6)
The data clearly show an accelerated decline in consumer sentiment. Short-term inflation expectations have also risen significantly.
US100 (D1)
Buyers appear to be losing momentum completely. Price has sharply broken below the EMA200, which is a very strong bearish signal. The EMA50 has also crossed below the EMA100, reinforcing the bearish momentum signal. At present, the price seems to be struggling to hold the 78.6 Fibonacci level; however, a break below this level may only be a matter of time. Source: xStation5
Company news:
- Carnival Corp (CCL.US): The cruise operator lowered its 2026 profit forecast, citing increased cost pressure from fuel. Shares are down more than 3%.
- Meta (META.US): Valuations of the social media platform operator are collapsing. In Thursday’s session, the stock lost nearly 10%, and today it is extending losses by another 2%. This follows a defeat in a court battle in which the company was found guilty of creating products harmful to young people, setting a dangerous precedent for the firm. In addition, the company is expected to implement significant job cuts.
- Microsoft (MSFT.US): One of the leaders of the U.S. technology sector announced a hiring freeze in cloud solutions and in sales. The stock is down nearly 3%.
- Palo Alto (PANW.US): Cybersecurity stocks are falling amid concerns about AI’s impact on business models. Additional pressure on SaaS stocks and broader macroeconomic uncertainty are pushing the company’s shares down 7% in today’s session.
- Entergy Corporation (ETR.US): The U.S. energy provider is up more than 4% after announcing an agreement with Meta. The company is set to supply power to a mega data center in Louisiana.
US100 slumps 1.5% 🚩 Anthropic Claude pressures Nasdaq again
The Michigan Sentiment Index highlights concerns about a short-term spike in U.S. inflation💡
Market wrap 📌European stocks slide amid the Middle East war fears
Chart of the Day: USDJPY at a Crossroads. Will the Government Step In?
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
