A Sea of Red as US-China Tech War Intensifies
The day ahead in European and global markets is marked by a sea of red as investors grapple with the risk posed by the U.S. intensifying its technology war with China. Investors are questioning whether massive spending on AI is justified, and market participants have now fully priced in the prospect of the Federal Reserve lowering its policy interest rate by 50 basis points this year. The sell-off has abated as investors chose to buy the dip given that stock's recent world-beating rally.
- This intensification of the US-China tech war could signal a broader shift away from a multilateral approach to global governance, with significant implications for trade agreements and international cooperation.
- As the U.S. seeks to tighten its grip on China's high-tech industries, will this lead to a new era of technological protectionism that harms not just China but also other nations?