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August 25, 2026 - 01:18
5 minutes
(Bloomberg) — Asian stocks were set to fall after Wall Street gauges retreated as losses in technology shares overshadowed a decline in oil prices.Equity-index futures for Japan and South Korea pointed lower, while those for Australia saw a slight gain. Earlier, a selloff in semiconductor giants dragged the Nasdaq 100 Index down nearly 1%. Nvidia Corp. fell for a seventh straight session — the longest losing streak since 2022.American crude oil held Monday’s losses, trading around $85 a barrel after US Treasury Secretary Scott Bessent threatened economic punishment against any country doing business with Iran. Global benchmark Brent fell more than 2% to $92.17 a barrel, snapping a six-day rally.Lower energy prices lifted Treasuries on Monday, with the 10-year yield falling four basis points to 4.70%. The dollar posted its biggest gain in two weeks on Monday, while gold climbed to over $4,650 an ounce.Investors are weighing mounting geopolitical risks against a packed week of economic data and corporate earnings, with the outlook for technology shares emerging as a key test for broader risk sentiment. Nvidia’s results on Wednesday will be closely watched for signs that the recent weakness in chipmakers has further to run.“Details about US economic sanctions on Iran, the Treasury’s attempts to lower long-term yields, and economic data may shape much of the sentiment backdrop,” said Chris Larkin at E*Trade from Morgan Stanley. “But Nvidia and other tech earnings are positioned to be a major weight on the market’s momentum scale.”Investors are also looking for clues on how the US central bank will respond to stubborn inflation when Federal Reserve Chair Kevin Warsh speaks at its annual gathering in Jackson Hole, Wyoming.With Treasury yields still elevated by sticky inflation and concerns over fiscal deficits, traders are watching for any clear guidance from Warsh on how the Fed might respond over the rest of the year.Earlier, Treasuries were also supported by a CNBC report that the Treasury Department could tap its cash pile to fund buybacks of higher-yielding older securities in an effort to curb borrowing costs.Bessent, however, stopped short of signaling any changes to US debt management in a speech Monday following the report.“We haven’t bought a single bond yet,” Bessent said when asked in a press conference whether he’s going to soon increase the buybacks.In tariff news, the Canadian dollar was little changed after Canadian ministers were set to announce a response to US tariffs on Tuesday.Back to the technology sector, Nvidia shares fell 2.9% even after the company had notified customers of AI-related price increases on systems shipped early next year.Nvidia’s results have become an important gauge of the artificial intelligence trade, which has come under pressure in recent months as investors question whether massive spending on the technology will translate into commensurate profits.“This is a key week for markets with Nvidia’s earnings and the annual Jackson Hole speech, which normally wouldn’t have a link, but Nvidia needs to impress in order to keep one leg of the stock market stable, and Warsh needs to provide clarity on interest rates in order to keep the other leg of the stock market stable,” said Richard Reyle, chief investment officer at Questar Capital Partners.Corporate Highlights:The US Securities and Exchange Commission has sent subpoenas to major Wall Street banks regarding the hedge fund Situational Awareness, according to people familiar with the matter. Elon Musk says SpaceX’s first AI satellites, powered by Nvidia chips, will initially launch in the fourth quarter of next year and hit “significant scale” in 2028. Oura Health Oy, a maker of smart rings that track health, fitness and sleep, and some of its backers are seeking to raise as much as $3 billion in a US IPO, according to people familiar with the matter. Porsche AG partnered with Tata Consultancy Services Ltd. for deploying artificial intelligence in a 1.25 billion euros ($1.5 billion) deal, while agreeing to sell its consulting unit to the Indian software services company. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:15 a.m. Tokyo time Hang Seng futures rose 0.6% S&P/ASX 200 futures rose 0.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1665 The Japanese yen was little changed at 159.08 per dollar The offshore yuan was little changed at 6.7212 per dollar The Australian dollar was unchanged at $0.7150 CryptocurrenciesBitcoin fell 0.2% to $78,743.1 Ether rose 0.1% to $2,477.94 BondsAustralia’s 10-year yield was little changed at 5.01% CommoditiesWest Texas Intermediate crude rose 0.2% to $85.15 a barrel Spot gold rose 0.4% to $4,672.28 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
