Market developments
Equities: Global equity markets experienced a turbulent week, with the S&P 500 heading toward its worst month since March 2025 amid concerns about artificial intelligence disruption, private credit troubles and geopolitical tensions. Nvidia reported record fourth-quarter earnings, with revenue and a first-quarter outlook that beat analyst estimates, but shares fell 5.5% on Thursday in the worst decline since April, as investors remained concerned about an AI bubble. Despite the weakness in U.S. markets, Asian equities were on track for their best February on record, with the MSCI Asia Pacific Index gaining 6.7% for the month as investors piled into companies supplying AI infrastructure.
Fixed Income: U.S. Treasuries wrapped up their best monthly performance in a year as investors sought safe haven assets amid rising global risks. The 10-year Treasury yield fell below 4% for the first time since November, driven by demand for safer assets amid stock market volatility. The rally in Treasuries was supported by a slump in technology shares, potential month-end rebalancing flows and rising geopolitical tensions.
Commodities: Oil continued to climb this week, driven by escalating U.S.-Iran tensions. Iranian crude oil loadings jumped almost threefold to about 27 million barrels last week as tensions intensified, pushing oil prices close to seven-month highs. Copper registered another weekly gain, rising about 2.8% as China’s Politburo called for more policies to boost domestic consumption.