Finance

Big bank quarterly earnings updates triggered mixed performances across the financial sector, highlighted by a notable drop in Bank of America shares following a $1.2 billion regulatory fine regarding anti-money laundering safeguards alongside a miss in trading revenue. Meanwhile, mixed corporate outcomes saw State Street underperform due to weak revenue, while Morgan Stanley and BlackRock managed minor gains following stronger equity trading numbers and capital inflows.

Tech-heavy indexes faced severe downward pressure as chipmakers and artificial intelligence infrastructure stocks extended recent losses. Global lithography giant ASML reported that its capacity expansion plans are failing to keep pace with demand, driving a sell-the-news response from investors. Additionally, the broader chip market suffered as concerns intensified over newer, competing products being introduced by Chinese fabricators.

The fixed income market experienced a significant selloff as government bond prices plunged inversely to surging yields. Following the hotter macroeconomic data, short-dated maturities led the losses while the 10-year Treasury yield jumped above 5.27% and the 30-year yield climbed past 5.59%. Concurrently, currency markets reacted strongly to the shifting interest rate outlook, pushing the U.S. dollar index up to its highest valuation since mid-2025.