The S&P 500 extended its losses for a second consecutive day, weighed down by the so-called Magnificent 7 tech giants and semiconductor stocks. Deutsche Bank reported that these sectors were the primary drivers behind the recent market weakness.
Adding to investor caution was a Financial Times report indicating that OpenAI’s annualised revenue is closer to $50 billion rather than the previously speculated $70 billion. This adjustment appears to have tempered enthusiasm for AI-related equities.
For Japanese investors, these developments highlight the ongoing volatility in US tech equities, which can influence global markets and impact Japan’s export-driven economy given its ties to semiconductor and technology supply chains.