US futures, Asian shares slip, tracking Wall Street’s retreat, while oil falls more than $2

Global Markets Retreat as Tech and Oil Fall, Gold’s Rally Halted

U.S. futures and Asian shares declined sharply on Monday, with oil prices dropping more than $2 per barrel as market concerns intensified across multiple fronts.

South Korea’s Kospi index suffered the most severe decline, plummeting 4.6% to 4,982.54 as investors reassessed valuations in the artificial intelligence sector. Technology giants that had propelled the index to record highs in recent weeks saw substantial losses, with Samsung Electronics falling 3.5% and chip manufacturer SK Hynix dropping 5.6%.

The South Korean benchmark had been setting record highs for weeks, buoyed by tech companies capitalizing on partnerships with major AI players like Nvidia. Monday’s sharp correction suggests growing investor skepticism about the sustainability of these gains.

In commodities markets, precious metals experienced volatility following their recent record-setting runs. Gold fell 1% on Monday, extending Friday’s 11.4% plunge that saw prices settle at $4,745.10 per ounce. The metal had approximately doubled in value over the past year, reaching an unprecedented $5,600 at one point last Thursday before the sudden reversal. Silver, which experienced a similar dramatic surge, tumbled 31.4% on Friday but rebounded slightly with a 2% gain on Monday.

U.S. equity futures pointed to a weak opening on Wall Street, with S&P 500 futures down 0.9% and Dow Jones Industrial Average futures falling 0.5%. Friday’s trading session had already seen the S&P 500 drop 0.4% to 6,930.03, while the Dow lost 0.4% to 48,892.47 and the Nasdaq composite declined 0.9%.

Markets appeared unsettled by President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve, creating uncertainty about the future direction of U.S. monetary policy. Warsh’s appointment, which requires Senate approval, has raised questions about the central bank’s independence and approach to interest rates. Trump has consistently advocated for lower rates to stimulate economic growth, despite potential inflationary risks.

The nomination comes at a sensitive time, as Friday’s economic data showed U.S. wholesale inflation running hotter than economists had expected. This could pressure the Fed to maintain current interest rates rather than implementing cuts, as it did in late 2023.

Energy markets also saw significant movement, with U.S. benchmark crude falling $2.80 to $62.41 per barrel and Brent crude dropping $3 to $66.32. The decline followed Trump’s comments to reporters aboard Air Force One regarding Iran, indicating that the Middle Eastern country was “seriously talking” to the U.S. about a potential nuclear deal. Analysts suggest these remarks eased concerns about possible disruptions to oil supplies that had previously driven prices higher.

Asian markets broadly retreated, with Hong Kong’s Hang Seng dropping 2% to 26,841.45, and the Shanghai Composite index falling 1.1% to 4,071.14. Taiwan’s Taiex lost 2.1%, and Australia’s S&P/ASX 200 declined 1.1%. Japan’s Nikkei 225 was a rare exception, edging 0.2% higher to 53,422.01.

A few bright spots emerged in Friday’s U.S. trading session, helping to limit broader market losses. Tesla rebounded with a 3.3% gain after dropping the previous day, despite reporting better-than-expected quarterly profits. Apple added 0.5% following stronger-than-anticipated quarterly results.

The dollar strengthened slightly, rising to 155.10 Japanese yen from 154.94 yen, while the euro climbed marginally to $1.1867 from $1.1853.

Market analysts are now closely monitoring these developments for signs of whether the recent volatility represents a temporary correction or the beginning of a more substantial market shift, particularly as concerns about tech valuations, inflation data, and geopolitical tensions converge.