Global Markets Turbulence: AI, Silver, and Oil in Focus

Global markets experienced a downturn as concerns over the costs of the AI boom mounted, impacting stocks and commodities. Silver and oil faced significant declines, while U.S. Treasuries gained traction amid weak labor data. Tech giants' spending plans surprised investors, contributing to broader market apprehension.

Global markets faced considerable strain on Thursday, with MSCI's global equities gauge dropping over 1% amid escalating concerns regarding the high costs associated with the artificial intelligence sector's expansion. In the commodities sector, silver experienced a marked decline, and oil prices also fell sharply.

U.S. Treasury yields decreased following disappointing labor market data and weak job openings reports, while technology giant spending plans on AI suggested financial challenges ahead. Amazon and Alphabet both announced substantial spending increases, causing their shares to decline, leading to a ripple effect on investor sentiment.

Additionally, a stronger U.S. dollar contributed to declines in precious metals, as the oil market closed lower after the U.S. and Iran moved towards negotiations. This financial landscape reflects a defensive shift by investors as market momentum shows signs of waning.

(With inputs from agencies.)