Global stocks and commodities plunge on volatile start

Stocks commodities plunge globally as tech fears and easing Iran tensions trigger sharp declines in oil, gold, and silver markets

Equities, oil, and precious metals suffered sharp declines on Monday, extending the volatility that rattled markets at the end of last week, amid investor concerns over inflated tech valuations and geopolitical uncertainties.

Also read: Dangote stocks decline amid merger denial, forex crisis

Trading floors reopened after Friday’s rollercoaster session, as investors digested earnings from major technology firms, US interest rate expectations, and evolving tensions between Washington and Tehran.

After a buoyant start to 2026 fuelled by optimism over artificial intelligence, global stocks reversed sharply last week as traders questioned returns on soaring tech investments, raising fears of a potential bubble following record highs in 2025.

The latest market turbulence followed Microsoft’s announcement of a significant increase in AI-related expenditure, reviving concerns over delayed profitability.

Asian markets were particularly affected, with Seoul’s benchmark index tumbling more than five per cent.

Chip giant SK hynix fell eight per cent while Samsung lost over five per cent.

Tokyo’s Nikkei 225 shed 0.7 per cent, and Taipei’s TSMC dropped more than two per cent.

Other key Asian markets including Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila, Bangkok, and Jakarta also recorded sharp losses.

Jakarta slid over five per cent, raising fears of a potential downgrade from emerging to frontier market status, which could prompt capital outflows.

Oil prices fell amid easing US-Iran tensions, with West Texas Intermediate and Brent crude dropping 4.7 per cent and 4.5 per cent respectively, after former US President Donald Trump indicated progress in nuclear negotiations.

Precious metals, traditionally safe havens, also suffered.

Gold lost up to six per cent, touching $4,586 per ounce, while silver dipped nearly 11 per cent to $75, following earlier steep declines last week.

The stronger US dollar, boosted by Trump’s nomination of Kevin Warsh as Federal Reserve Chair, further intensified selling pressure.

“The combination of geopolitical developments and rising expectations for Fed policy tightening has rattled investors,” said Brian Levitt of Invesco. “Markets are adjusting to the reality that growth in tech and AI sectors may not translate immediately into returns.”

By early trading, London’s FTSE 100 edged up 0.5 per cent to 10,223.54, while New York’s Dow Jones Industrial Average fell 0.4 per cent to 48,892.47.

Euro-dollar rates ticked up to $1.1867 and the pound-dollar slipped slightly to $1.3686.

Also read: Nigerian stock market records first weekly loss amid profit-taking

The global sell-off underscores heightened sensitivity in financial markets to tech valuations, geopolitical risk, and central bank policy, signalling continued turbulence in the weeks ahead.

Ibrahim Onipede