Brussels Stock Market Expects Lower Open Amid Technology Sell-Off
The Brussels stock exchange is expected to open lower, pressured by persistent selling in American technology shares and a negative market reception to Apple’s forward-looking guidance, according to MarketScreener Netherlands and ABM Financial News. The downturn follows a positive session for the Bel20 on Monday, when the blue-chip index gained 0.6 percent to close at 5,876.76 points, propelled by lower oil prices and easing interest rates. That performance left the index hovering near its record peak of 5,905.83 points within a broadly green European market.
Wall Street Optimism Fades as AI Returns Face Scrutiny
On Wall Street, early optimism driven by lower energy costs quickly evaporated during Monday’s trading session. The Nasdaq Composite dropped 1.1 percent to 25,164.32 points, while the S&P 500 lost 0.5 percent to finish at 7,541.40 points. In contrast, the Dow Jones Industrial Average managed a 0.4 percent gain to 51,983.98 points, MarketScreener Netherlands reported. Investor anxiety over the financial returns on massive capital investments in artificial intelligence weighed heavily on the technology sector. Intel shares plunged 8.8 percent, compounding a nearly 29 percent crash from Friday. Meanwhile, Marvell Technology dropped 12.7 percent after announcing an all-stock acquisition of Lumentum valued at 115 billion dollars, causing Lumentum shares to plummet 18.6 percent.
Apple Guidance and Global Tech Declines
Pressure intensified after the closing bell when Apple warned of shrinking gross margins during the crucial holiday quarter, driven by rising costs for memory chips. The iPhone manufacturer also reported that its anticipated growth in services revenue missed expectations, sending the stock down about 2.6 percent in after-hours trading following a 1.8 percent decline during the regular session. Asian markets followed the downward trajectory, with South Korea’s exchange tumbling 4 percent by early morning, led lower by Samsung Electronics and SK Hynix. Shanghai shares fell 0.9 percent, Hong Kong ticked up 0.1 percent, and Australia gained 0.3 percent while Japan closed for a national holiday.
Central Bank Adjustments and Commodity Shifts
China’s newly announced monetary support measures proved short-lived in calming investor nerves. While the central bank aims to make financing for share buybacks and equity stake increases more attractive, Citi analysts noted that these interventions offer insufficient foundations for a sustainable market recovery. In the southern hemisphere, the Reserve Bank of Australia raised its official cash rate by 25 basis points to 4.85 percent, marking its fifth rate hike of the year amid stubborn, broad-based inflationary pressures. Crude oil prices rebounded by roughly one and a half percent from Monday’s steep sell-off. Brent crude had plummeted 7.6 percent to 104.77 dollars per barrel following signals of diplomatic rapprochement between the United States and Iran, though a definitive agreement regarding the reopening of the Strait of Hormuz remains unreached.
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