This content was published on
June 8, 2026 - 09:30
5 minutes
(Bloomberg) — Stocks and bonds dropped as investors grappled with rising oil prices, mounting bets on US interest rate hikes and a pullback in the artificial-intelligence trade.Europe’s Stoxx 600 fell 0.6%. Brent crude climbed 4.6% to above $97 a barrel after Israel retaliated against Iranian missile attacks. Yields climbed across the world, with the rate on 10-year Treasuries up four basis points to 4.57% as traders almost fully priced in two Federal Reserve hikes over the next 12 months.Asia’s main stock benchmark fell 3.2%, tracking the rout in AI stocks in the US on Friday. South Korea’s Kospi index tanked 8.3%. US stock futures steadied after the selloff, with contracts on the S&P 500 up 0.3% while those for the Nasdaq 100 rose 0.6%.The retreat marks the biggest test in weeks for an equity bull market that has been fueled by a blistering rally in tech and hopes that calm would return to the Middle East. Investors are now contending with a plethora of negatives: doubts over whether the rally has run too far, renewed fighting in the Middle East and inflation pressures that are bolstering the case for rate hikes.“In the longer run, this will prove to be a technical correction, albeit a scary one in a longer-term bull market,” Goldman Sachs Group Inc. Chief Asia Pacific regional equity strategist Tim Moe said on Bloomberg TV.Stocks related to chipmakers and software were weak across Europe, with ASM International NV, ASML Holding NV and Nemetschek SE falling more than 2%. In Asia, Samsung Electronics Co. tumbled as much as 11%, SK Hynix Inc. lost 10% and Taiwan Semiconductor Manufacturing Co. slid 5.7%.What Bloomberg Strategists Say…“The equity market’s two key drivers, AI and energy, have both turned negative, pointing to downside for stocks. While the weakness in tech looks more like a correction than the start of a bear market, investors are heading into two weeks packed with event risk just as oil prices are moving higher again. It is difficult to argue for adding risk in the near term.”— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.A flood of new shares from companies looking to fund their AI ambitions is also raising questions on Wall Street about whether there will be enough buyers to soak them all up.Meanwhile, Bitcoin climbed 2.1% to above $63,000 after falling below the $60,000 mark on Friday for the first time since Donald Trump won reelection in 2024.In geopolitical news, Israel said it struck several military targets in Iran, retaliating against missile attacks by Tehran despite Trump’s call for Prime Minister Benjamin Netanyahu to refrain from hitting back.The exchange is one of the most serious tests of a ceasefire that took effect on April 8 to halt fighting involving the US, Israel and Iran. It comes as the US and Iran appear to be making little progress toward an interim agreement to end the war, even as Trump has repeatedly said a deal is near.Interest-rate swaps indicated traders expect a quarter-point Fed hike by the December policy meeting, with a roughly 75% chance of a move in October.Corporate Highlights:Intesa Sanpaolo SpA offered to buy Banca Monte dei Paschi di Siena SpA for €30.6 billion ($35.3 billion) in a move that’s set to spur a new phase of dealmaking in Italian finance. A consortium of French telecommunications companies have agreed to buy billionaire Patrick Drahi’s SFR in a deal that values the country’s second-largest mobile carrier at €20.4 billion ($23.5 billion) including debt. Airbus SE has been notifying some customers of delays on A320neo series jets that are due to be delivered in 2027 and 2028, according to people familiar with the matter. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.6% as of 8:25 a.m. London time S&P 500 futures rose 0.3% Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average fell 0.3% The MSCI Asia Pacific Index fell 3.2% The MSCI Emerging Markets Index fell 3.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1526 The Japanese yen was little changed at 160.23 per dollar The offshore yuan was little changed at 6.7869 per dollar The British pound was little changed at $1.3344 CryptocurrenciesBitcoin rose 2.1% to $63,123.84 Ether rose 2.7% to $1,672.45 BondsThe yield on 10-year Treasuries advanced four basis points to 4.57% Germany’s 10-year yield advanced two basis points to 3.05% Britain’s 10-year yield advanced three basis points to 4.93% CommoditiesBrent crude rose 4.6% to $97.38 a barrel Spot gold fell 0.3% to $4,313.96 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Alice French and Winnie Hsu.©2026 Bloomberg L.P.
