Global Tech Stocks Retreat, Oil Tumbles, Gold Climbs Higher as U.S.-Canada Trade Talks Collapse

Market Overview

Markets on Tuesday centered on three major themes.

First, technology stocks retreated globally. The Philadelphia Semiconductor Index fell nearly 4%, while the Nasdaq Composite declined 0.76% to 25,980. Losses were even steeper across Asia, with South Korea‘s KOSPI down 3.12%, the Hang Seng TECH Index falling 3.61%, and China’s ChiNext Index sliding 3.21%. Nvidia has reportedly informed customers that prices for its AI servers will rise by more than 15% next year, putting additional focus on the company as it prepares to report earnings on Wednesday.

Second, trade tensions escalated sharply. President Trump announced that tariffs on Canadian automobiles, auto parts, and steel will be raised to 50% starting next year. U.S.-Canada trade negotiations have effectively broken down, marking a significant escalation in economic tensions between the two countries.

Third, safe-haven demand remained firm. Spot gold rose 1.05% to $4,651, extending its move to another fresh level, while Bitcoin gained 1.59% to $78,966. Oil moved sharply in the opposite direction, with WTI crude falling 2.35% to $85.01 and Brent crude dropping 2.35% to $92.17.

Long-term U.S. Treasury yields eased, with the 10-year yield falling to 4.70%, as the Treasury Department deployed nearly $1 trillion toward Treasury buybacks.

Chinese companies also remained in focus. Alibaba announced an HK$80 billion share placement to fund investments across its full-stack AI capabilities, while PDD Holdings reported a 13% year-over-year increase in second-quarter revenue.

Key Themes Ahead● Warsh Makes His Jackson Hole Debut

Federal Reserve Chair Kevin Warsh is set to deliver his first speech at the Jackson Hole Economic Policy Symposium since taking office. Investors will be watching closely for clues on his policy stance, the future path of interest rates, and the Feds broader priorities.

With long-term Treasury yields elevated while fiscal authorities are simultaneously intervening in the bond market, even subtle language regarding the pace and sequencing of policy decisions could significantly influence near-term pricing across equities, bonds, and the U.S. dollar.

● Ripple Effects From the U.S.-Canada Tariff Fight

The breakdown in U.S.-Canada trade negotiations and the increase in tariffs to 50% have put two deeply integrated cross-border supply chains, automobiles and steel, directly in the spotlight.

The scale of Canada‘s retaliatory measures, companies’ ability to pass higher costs on to consumers, and the resulting impact on North American manufacturing and inflation expectations will be critical indicators for assessing how far the trade dispute could spill over into the broader economy.

Key Events to Watch

• Fed Chair Kevin Warsh delivers his first speech at the Jackson Hole Economic Policy Symposium

• U.S. August Consumer Confidence, July New Home Sales, and June Home Price Index

• Germanys August Ifo Business Climate Index

• Minutes from the Reserve Bank of Australias August policy meeting

• Opening of the 24th Session of the Standing Committee of China‘s 14th National People’s Congress

• 25th Meeting of the Special Representatives on the China-India Boundary Question

• Oil prices and developments in the Red Sea

• Canadas retaliatory tariffs take effect on September 8