Global markets react to Volkswagen decline and US-Iran rumors

Global markets experienced significant volatility driven by corporate developments and geopolitical rumors. Volkswagen shares fell nearly 13% over a five-day period following a reduction in 2026 operating margin estimates and a €6 billion write-down on Porsche. Additionally, Porsche AG saw an 8.3% decline despite internal denials regarding potential job cuts.

In the technology sector, Arm Holdings saw a portion of its recent rally recede, with the stock closing down 7.88% for the week despite maintaining a market capitalization above $300 billion. In Italy, the tender offer process for Tim by Poste Italiane reached a critical stage with the reopening of terms.

In the United States, Wall Street saw a recovery in the S&P 500 following rumors of a potential diplomatic agreement between the U.S. and Iran. Reports suggested a gradual plan involving the opening of the Strait of Hormuz and the progressive removal of sanctions, which contributed to a decline in crude oil prices. Meanwhile, Treasury yields reached multi-year highs, and attention remained on discussions between Chinese President Xi Jinping and U.S. President Donald Trump regarding security and artificial intelligence.