Global markets opened the week on a sharply negative note, with equities, oil, and precious metals all retreating after the turbulence that marked the end of last week. Investors are weighing geopolitical tensions, recent corporate earnings reports, and expectations for US interest rate policy.

After a strong January driven by investor enthusiasm for artificial intelligence, technology stocks began to retrace as questions resurfaced over lofty valuations and the timeline for returns on substantial AI investments. Concerns over a potential tech bubble have intensified, particularly following Microsoft’s announcement of increased spending on AI infrastructure, which reignited doubts about how quickly companies would see profits from their investments.

Asian markets were hit hardest, with Seoul’s main index plunging more than five percent. SK Hynix fell eight percent, while Samsung dropped over six percent. Tokyo’s Nikkei shed 1.3 percent, and Taipei, Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila, and Bangkok all posted declines. Jakarta extended its losses from last week, falling more than five percent after MSCI highlighted ownership concerns and postponed plans to add Indonesian stocks to its indexes. European markets, including London, Paris, and Frankfurt, also opened lower.

Oil prices dropped sharply as easing tensions between the United States and Iran eased supply fears. Both major crude benchmarks fell more than five percent at one stage after President Donald Trump expressed hope for a deal with Tehran, following warnings from Iranian Supreme Leader Ayatollah Ali Khamenei that any US attack would trigger a regional conflict.

The US dollar strengthened after Trump nominated Kevin Warsh, former Federal Reserve governor and investment banker, to lead the central bank. Traders see Warsh as a firm hand on inflation, although he has recently indicated a more flexible approach to policy in 2026. His nomination eased concerns about the Fed’s independence and contributed to a stronger greenback, which in turn pressured precious metals.

Gold fell sharply, losing nearly 12 percent at one point last week, while silver tumbled more than 30 percent. Losses continued on Monday, with gold dipping just below $4,403 per ounce and silver touching roughly $75 per ounce, down from record highs of $5,595 and $121, respectively. Analysts suggest that while the market pullback has been steep, it may have overshot, creating potential opportunities for selective buying.

Overall, investors remain cautious, closely monitoring technology valuations, oil price developments, geopolitical risks, and shifts in US monetary policy, as uncertainty continues to dominate global markets.