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U.S. markets face volatility amid debt concerns and corporate shifts
U.S. financial markets experienced significant volatility driven by corporate earnings, bond yield fluctuations, and concerns over national debt. Walmart shares fell 9% following disappointing financial outlooks, serving as a key indicator of consumer health and the widening economic gap between different population segments.
In the technology sector, Alibaba reported a 75% drop in net profit for the June quarter, primarily due to massive investments in artificial intelligence infrastructure. This trend highlights growing concerns regarding the timeline for AI investments to yield tangible returns.
Simultaneously, gold prices surged, with futures reaching $4,647.70 per ounce. This 5% weekly increase was fueled by a weakening dollar, bond market instability, and anxieties surrounding the U.S. national debt, which has surpassed $40 trillion. To support liquidity, the U.S. Treasury announced plans to significantly increase buyback operations for 10-to-30-year Treasury securities.