Global tech rout loses steam

The global tech rout has lost momentum as concerns over AI financing and debt mount in Asia, though the impact diminished in Europe and the United States. Despite this, US government bonds experienced one of their best days in months, amidst a rise in US producer inflation. CoreWeave, an AI firm, saw its bonds fall below 80 cents on the dollar, signaling distress.

Meanwhile, the cost of insuring against potential defaults of major AI companies surged to record highs. While the tech sector faced a decline, other sectors like healthcare and energy saw gains. The dollar weakened, with the Swiss franc gaining ground. The Federal Reserve's quest for a quiet approach to monetary policy faced pushback, while global economic indicators showed mixed signals.