Wall Street anticipates a new volatile day as oil halts its bullish rally

Extending yesterday's trend, most global stock markets are falling this Tuesday due to renewed concerns about artificial intelligence, which affected high-performance chip manufacturers, leading investors to seek refuge in government bonds. Meanwhile, stock markets with a strong technology presence in Asia and the United States suffered from the impact of massive sell-offs.

The benchmark yield on 10-year U.S. Treasury bonds fell to 5.193%, slightly distancing itself from last week's 24-year high of 5.364%.

A combination of inflationary pressures stemming from high energy prices and concerns over excessive public debt triggered several waves of massive bond sell-offs in recent weeks, pushing financing costs to multi-decade highs worldwide.

Brent crude --- the benchmark for much of the world, including Argentina --- fell 2% to $104.75 per barrel, while U.S. WTI crude retreated 1.7% to $91.87 per barrel.

The dollar index, which measures the value of the U.S. currency against six others, hit its highest level in 18 months, reaching 102.58. It has currently retreated 0.3% but remains in the 102-point range.

This increase was supported by demand for safe-haven assets as attacks in the Middle East intensified over the weekend, keeping investors cautious ahead of key inflation data from the U.S. to be released later this week.

Wall Street anticipates a volatile day and chip manufacturers fall.

Key points of the day on Wall Street

Investor attention will focus this week on the results of U.S. banks to assess the impact of the recent rise in Treasury bond yields on merger and acquisition activities, loan growth, and financing costs.

Three of the six largest credit institutions in the U.S. --- Goldman Sachs, Citigroup, and Wells Fargo --- will release their results later today, while J.P. Morgan Chase already reported this morning, with an Earnings Per Share (EPS) lower than market projections.

In this context, the index that groups the most important companies on the New York Stock Exchange, the S&P 500, fell 0.08% in the "premarket", while the Nasdaq Composite, focused on the technology sector, dropped 0.69%. Meanwhile, the industrial index Dow Jones moved up 0.43%.

On the other hand, U.S. chip manufacturers were once again under pressure after the massive sell-off at the start of the week. Although investors have jumped on the AI wave, concerns about concentration risks and whether profitability will arrive soon enough are beginning to weigh on market operators.

Reports on the advances of Chinese memory chip manufacturer CXMT fueled concerns about increased competition from Chinese companies dedicated to artificial intelligence, while Broadcom CEO Hock Tan compared some of the investment flows into the AI sector in general to "gambling in a casino."

In China, the Hong Kong Hang Seng rose 0.30%, while the Shanghai stock exchange increased by 0.10%. Meanwhile, the South Korean Kospi plummeted 5.46% and the Japanese Nikkei 225 fell 1.82%.

In Europe, the Euro Stoxx fell 0.09%. Locally, the German DAX increased by 0.29% and the French CAC followed with 0.16%. Outside the eurozone, the UK FTSE rose 0.70%.

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