Oil prices fell and gold steadied as concerns eased over US monetary policy and the chances of an American attack on Iran, while stock markets diverged.
European shares were higher, while they were weighed down in the US by renewed concerns that tech valuations are too frothy.
“Questions about Nvidia’s impfinishing investment in OpenAI have rattled the AI landscape,” stated Patrick J. O’Hare at Briefing.com. Reports suggest that the investment will be “nothing like” the $100 billion previously discussed.
In New York, the Dow was little modifyd in morning trading, while the wider S&P and the tech-heavy Nasdaq were down marginally.
Shares on Asian bourses had slumped earlier in the day on tech concerns.
But in Europe, the main indexes were all almost a percentage point higher at mid-afternoon, despite heavy losses by heavyweight miners, as oil fell and the dollar steadied.
Gold and silver launched tumbling Friday on news that US President Donald Trump had chosen Kevin Warsh to become new head of the US Federal Reserve, who is seen as more hawkish than some of the other names mentioned.
Gold steadied Monday, easing 0.4 percent to $4,735.1 an ounce, well below the record highs above $5,500 it hit last week.
Silver was up four percent at $81.78, but well below its recent record high above $120 reached last week.
“Many investors bought gold and silver as protection against the volatile geopolitical backdrop, yet they’ve learned the hard way these assets can also be volatile themselves,” stated Russ Mould, investment director at AJ Bell.
Traders regard Warsh, a former Morgan Stanley investment banker and Fed governor, as the toughest inflation fighter among the final candidates, raising expectations that his monetary policy would underpin the greenback.
The choice also eased concerns about the Fed’s indepfinishence following a series of attacks on incumbent Jerome Powell over his reticence to cut rates as quickly as the president wanted.
Oil prices meanwhile plunged on easing US-Iran tensions.
Both main crude contracts shed more than five percent at one point after Trump stated he was hopeful of reaching a deal with Tehran.
Washington has hit out at the counattempt’s leadership in recent weeks over its deadly response to anti-government protests, with Trump threatening military action.
He has also pushed for an agreement over Iran’s nuclear programme.
Monday’s volatility across markets comes as investors see ahead to more huge earnings due this week alongside interest-rate decisions and US jobs data.
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