Key facts
- MSCI's global equities gauge declined on Monday.
- Technology stocks led losses, overshadowing gains from lower U.S. Treasury yields and falling oil prices.
- Alibaba announced a $10.2 billion share sale, and Samsung Electronics revealed a $79 billion shareholder-return plan.
- Investors are awaiting Nvidia's quarterly report.
- U.S. Treasury Secretary Scott Bessent announced expanded secondary sanctions on entities doing business with Iran.
- Longer-dated U.S. Treasury yields fell, while the 2-year yield rose.
- The Canadian dollar dipped amid escalating U.S.-Canada trade tensions and potential tariff increases.
MSCI's global equities gauge fell on Monday, as weakness in technology stocks offset positive movements from declining U.S. Treasury yields and oil prices. Investors are closely watching for Nvidia's upcoming quarterly report, with concerns about meeting high expectations.
Corporate news also contributed to the pressure on technology shares. Alibaba announced a $10.2 billion share sale to fund its artificial intelligence ambitions, while Samsung Electronics revealed a record $79 billion shareholder-return plan that fell short of some investor expectations. South Korea's KOSPI index saw a significant drop following Samsung's announcement.
In the broader market, the Dow Jones Industrial Average closed higher, while the S&P 500 and Nasdaq Composite finished in the red. The pan-European STOXX 600 index remained largely unchanged.
On the geopolitical front, U.S. Treasury Secretary Scott Bessent announced an expansion of secondary sanctions against entities doing business with Iran, though oil prices declined as traders appeared to shrug off the news. Longer-dated U.S. Treasury yields decreased following a report that the Treasury Department might tap its cash account for debt buybacks, while the 2-year yield saw a slight increase.
In currency markets, the Canadian dollar weakened due to escalating trade tensions with the United States. President Donald Trump threatened to increase tariffs on Canadian vehicles, prompting Canadian Prime Minister Mark Carney to state that retaliatory tariffs would be implemented in September.
Traders are currently pricing in a roughly 58 percent probability that the Federal Reserve will maintain its current interest rates at the September meeting.