Tech fears and a Fed firing?
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Why did US tech stocks tumble overnight and what’s driving investor anxiety?
Another bad session for US tech stocks. What is it that's spooking investors? Plus, another firing threat for the Fed. Donald Trump sees the chance to get another of his people in there, and it's not Jerome Powell who has to go this time. Plus, a more dovish than expected RBNZ yesterday, a higher than expected UK CPI and Japan trade takes a hit from tariffs. It's Thursday, it's the twenty-first of August, twenty twenty-five. It's the morning call from NAB. Good morning. Well, US stocks are down again today, including a naught point six percent drop in the Nasdaq. It was well over one percent not so long ago. Uh not point two percent lower for the SP, that was also quite a bit lower, and the Dow climbing just into the green late in the session, finishing up naught point two percent.
Shares down in Europe as well, not point six percent off the DAX, one percent off the FTSE one hundred, and naught point two percent lower for the Eurostocks fifty. Bond yields are moving lower, down two basis points for ten year treasuries. Three in Germany and uh UK ten year guilts down seven basis points today, reversing a trend of gradually rising uh through most of August. Aussie ten years were down three basis points yesterday to four point two nine percent. That is pretty much where they are this morning on futures. The US dollar slightly down on the DXY, but the Aussie down more, losing a third of one percent down to sixty-four point three US cents. The pound is down a similar amount. But the yen is up naught point three percent, the euro is up just naught point one percent, and oil is up one point four percent higher for WTI, one point eight percent up for Brent, which is at sixty seven a barrel.
And he's back again. Uh we'll never get sick of hearing his voice. It's Rodrigo well we're just testing the boundaries perhaps, it's Rodrigo Catrill today. Uh good mind is the third time in a week, isn't it, for you? Uh so I I'm not always here out of, you know, goodwill. Yeah. When other people got commitments. Someone's gonna step up. We are paying it for this though, you know.
Is Sam Altman’s warning about AI investors getting “burned” causing the tech sell‑off?
Let's be let's be honest. So uh look, s second day uh oh dear, bone of contention. Uh this is starting badly. A second day uh with tech down today. Nobody's entirely sure, are they? Although it all sort of seems to have uh started off a couple of days ago when San Altman, the uh CEO of OpenAI, said that um investors are getting over excited excited about AI and some people could get their fingers burned. Do you think it's just a a a continuation of that, you know, reevaluation? Um, maybe
a little bit of that. Um, certainly I mean he he does have a point. You know, when you look at the evaluations and um Ps and everything and and they they look, you know, price for perfection in a way. But uh there's also a huge commitment to to to the sector. So um and even you know overnight he's he's been talking about the fact that he expects even more money to be piled into into AI. So um I'm I'm not quite sure it it appears to have been the the catalyst a couple of days ago, but uh I'm not quite sure you You can uh overstretch it and say that it's continuing or is it still a factor. But uh um there's a lot of moving parts at the moment in terms of what's going on, even in terms of the price action overnight.
Um uh which we'll talk about in terms of the the minutes and the reaction that we got from from uh the rates market. So I think there's just a little bit of more sensitivity to challenging news. Uh and and given uh where stocks are, some of them will will probably show a little bit of a greater reaction. So that that would be my general sense.
Well let's uh talk about the Fed then and also the movement in uh in in bond yields as well in the United States. So we saw uh we had a a a bond auction, twenty year bond auction that there were concerns about the it coming in week. It actually performed fairly well. But the FRMC minutes there was a response to that, wasn't it? It was obviously a fairly tense meeting judging by the minutes. We had two dissenters of course who believed that uh rates should be cut.
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