Investing Com

• Asian stock markets tumbled as a sharp selloff in AI and semiconductor trades hit the region, specifically hammering South Korea's KOSPI index. • The volatility was severe enough to trigger a circuit breaker in South Korea, reflecting a rapid unwinding of crowded trades that had driven performance through much of 2026. • This downturn impacts key memory-chip makers and Samsung Electronics, which had previously seen massive inflows from foreign investors due to the demand for AI servers and data centers.

• U.S. and Iranian officials are continuing diplomatic talks in Switzerland, although reports from Iranian media suggest a potential walkout. • Morgan Stanley warns that gold may struggle to reach $5,200 as hawkish Federal Reserve policies reduce demand for gold ETFs. • A Wall Street Journal report highlights that U.S. sanctions are failing to effectively curb evasion tactics used by Iran, Russia, and North Korea.

• Asian currency markets and the U.S. dollar remained largely muted as investors await the upcoming Federal Reserve interest rate decision. • While the Chinese yuan (USD/CNY) and Singapore dollar (USD/SGD) showed little movement, the South Korean won (USD/KRW) rose by 0.4%. • Market participants are closely monitoring the situation in the Middle East, specifically looking for further details regarding a potential truce in Iran.

• CrowdStrike has announced an expansion of its AI-driven security tools specifically designed for applications running on Amazon Web Services (AWS). • The initiative involves the expansion of "Project QuiltWorks," which focuses on identifying and mitigating cybersecurity vulnerabilities related to artificial intelligence. • This move matters as it strengthens the partnership between CrowdStrike and AWS to protect cloud-based AI infrastructure from evolving threats.

• Chinese AI startup DeepSeek has successfully closed a $7 billion funding round to accelerate its development. • The company gained global recognition last year for its V3 and R1 models, which are noted for their advanced capabilities and low operating costs. • This massive capital injection positions DeepSeek as one of China's premier AI developers in a highly competitive global landscape.

• The Bank of Japan raised interest rates by 25 basis points as anticipated and announced a reduction in its bond purchase program. • U.S. markets saw significant gains, with the Dow reaching a record close and the Nasdaq experiencing its strongest day since March, driven by an interim peace deal in Iran. • These developments highlight a shift in Japanese monetary policy and a positive investor reaction to geopolitical stabilization in the Middle East.

• SpaceX shares continued to rise following its record-breaking IPO, which has pushed the company's valuation to $2.1 trillion. • Gold prices surged as a peace deal between the U.S. and Iran reduced inflation concerns and weakened the U.S. dollar. • Investors are closely monitoring Fed Chair Kevin Warsh, who faces pressure from President Trump to implement aggressive rate cuts despite rising price growth.