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August 25, 2026 - 06:01
6 minutes
(Bloomberg) — A global selloff in chip stocks extended as investors cut exposure to technology shares ahead of key earnings this week that will test confidence in the artificial intelligence trade. Bitcoin advanced.Chipmakers suffered outsized losses, with SK Hynix Inc. falling 4% and Samsung Electronics Co. dropping 2.2%, while MSCI’s broader Asia Pacific gauge slipped 0.4%. That followed a decline in semiconductor giants on Wall Street, where a gauge of chip stocks slid to its lowest level since July.Earlier, chip bellwether Nvidia Corp. posted its longest losing streak since 2022 in US trading as investors pared holdings ahead of its earnings Wednesday. Wider sentiment was still mixed, however, as US and European equity-index futures edged higher.Elsewhere, attention was on Bitcoin, which built on its recent rally to climb over $80,000 for the first time since May as optimism returned to the long-beaten-down crypto market.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 will be closely watched for signs that the recent weakness in chipmakers has further to run.“Investors will peruse closely Nvidia’s upcoming earnings announcement for any clues whether the AI hardware boom, or the attendant rise in profits, is losing steam,” said Frederic Neumann, chief Asia economist at HSBC Holdings Plc. “Financial markets will pay especially close attention to the presentation by Fed Chair Kevin Warsh at the Jackson Hole meetings, looking for clues about the near-term trajectory of US monetary policy.”What Bloomberg Strategists Say…“Gold is enjoying a buoyant month as investors build hedges against the risk of a long-term decline in the US dollar. The revival in cryptocurrencies points to the same concern over the greenback’s outlook.”— Mark Cranfield, MLive. For full analysis, click here.In other corners of the market, Brent crude recouped some of Monday’s losses, rising 0.3% to about $92.45 a barrel after US Treasury Secretary Scott Bessent threatened economic punishment against countries doing business with Iran.A Bloomberg gauge of the dollar held its gains from Monday. The greenback had strengthened after Bessent said the US will cut Iran off from the global financial system, underscoring the US currency’s central role in trade and boosting its haven appeal.The Canadian dollar was little changed after Canadian ministers were set to announce a response to US tariffs on Tuesday.Gold erased earlier gains to slip 0.4% to about $4,635 an ounce. The commodity had climbed to levels last seen in May as the US Treasury’s intervention in the bond market revived concern about widening US deficits and their impact on the dollar.Treasuries steadied with the 10-year yield at 4.71% after dropping four basis points Monday. In the US session, Treasuries were supported by a CNBC report that the Treasury may 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.Investors will be looking for clues on how the US central bank will respond to stubborn inflation when Warsh speaks on Friday at Fed’s 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.“This is a key week for markets with Nvidia’s earnings and the annual Jackson Hole speech,” said Richard Reyle, chief investment officer at Questar Capital Partners. The two events “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.”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. 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. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 12:57 p.m. Tokyo time Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 rose 0.5% Hong Kong’s Hang Seng fell 0.2% The Shanghai Composite fell 0.1% Euro Stoxx 50 futures rose 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1661 The Japanese yen fell 0.1% to 159.32 per dollar The offshore yuan was little changed at 6.7233 per dollar CryptocurrenciesBitcoin rose 1.8% to $80,363.51 Ether rose 0.8% to $2,494.43 BondsThe yield on 10-year Treasuries advanced two basis points to 4.71% Japan’s 10-year yield advanced one basis point to 2.890% Australia’s 10-year yield advanced two basis points to 5.03% CommoditiesWest Texas Intermediate crude rose 0.5% to $85.43 a barrel Spot gold fell 0.4% to $4,635.21 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Winnie Hsu.©2026 Bloomberg L.P.
