Welcome to Markets Desk, your midday read on what's moving money.
Apple shares hit a fresh all-time high after reports the company is partnering with both Alibaba and Baidu to bring advanced AI capabilities to iPhones in China. That partnership sent both Chinese tech giants surging in Hong Kong trading, a notable signal that even amid US-China rivalry, commercial AI deals are still getting done.
Pulling back to the broader macro picture, US producer prices came in softer than expected on Wednesday, and the market took that as confirmation that the Fed's path toward easing remains intact. The dollar index fell to a three-and-a-half-week low, Treasury yields pulled back, and traders further reduced bets on rates staying higher for longer.
Despite that constructive overnight backdrop from Wall Street, Asian markets are struggling to hold gains this session. South Korea is the standout laggard, tumbling more than seven percent as a sharp selloff in semiconductor and technology stocks reignited anxiety over stretched AI valuations. Australia's benchmark index slipped into the red mid-session, unable to sustain its opening gains.
That's the tape. Markets Desk, signing off the floor.
