{"id":64935,"date":"2026-07-17T03:08:17","date_gmt":"2026-07-17T07:08:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-ai-trade-reverses-volvo-eyes-ev-rebound\/64935\/"},"modified":"2026-07-17T03:08:17","modified_gmt":"2026-07-17T07:08:17","slug":"global-markets-retreat-as-ai-trade-reverses-volvo-eyes-ev-rebound","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-ai-trade-reverses-volvo-eyes-ev-rebound\/64935\/","title":{"rendered":"Global Markets Retreat as AI Trade Reverses; Volvo Eyes EV Rebound"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global technology stocks tumbled<\/strong> as the high-flying &quot;AI trade&quot; went into reverse, with Japan&#39;s <strong>Nikkei 225<\/strong> plunging <strong>4.9%<\/strong> and the <strong>Nasdaq 100<\/strong> futures falling <strong>1.5%<\/strong>.<\/li>\n<li><strong>Volvo Cars (<a href=\"\/stock\/VOLCAR-B\">VOLCAR-B<\/a>)<\/strong> reported a <strong>50% drop<\/strong> in Q2 operating profit to <strong>800 million SEK<\/strong>, but expects a second-half recovery driven by the <strong>EX60<\/strong> electric SUV.<\/li>\n<li><strong>Japan\u2019s Prime Minister Sanae Takaichi<\/strong> signaled a push for the <strong>$1.8 trillion GPIF<\/strong> to increase domestic asset allocations to support national economic growth.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> as a tanker was struck by a projectile near the <strong>Strait of Hormuz<\/strong>, and Russian forces targeted port infrastructure in <strong>Odesa<\/strong> and <strong>Chornomorsk<\/strong>.<\/li>\n<li><strong>Azerbaijan\u2019s energy exports remained robust<\/strong> in H1 2026, with natural gas deliveries to Europe reaching <strong>5.9 billion cubic metres<\/strong>.<\/li>\n<\/ul>\n<p>Global equity markets faced significant downward pressure on Friday as investors aggressively pulled back from semiconductor and artificial intelligence stocks. The <strong>Financial Times<\/strong> reported that the sell-off was triggered by concerns over sustainable returns on massive AI investments, leading to a <strong>$1.3 trillion<\/strong> wipeout in global market value. In Asia, chipmaker <strong>Kioxia<\/strong> saw its shares crater by <strong>16%<\/strong>, while <strong>Taiwan Semiconductor Manufacturing Company (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong> fell over <strong>7%<\/strong>.<\/p>\n<p><strong>Volvo Cars (<a href=\"\/stock\/VOLCAR-B\">VOLCAR-B<\/a>)<\/strong> navigated a challenging second quarter, with the CFO citing external market pressures and higher raw material costs. Despite a sharp decline in quarterly profit, the Swedish automaker maintained its <strong>20% stake<\/strong> in <strong>Polestar (<a href=\"\/stock\/PSNY\">PSNY<\/a>)<\/strong> and reported that demand for its new <strong>EX60<\/strong> model is currently outpacing production capacity. The company is prioritizing premium brand positioning in China over volume-driven discounts, even as sales in the region soften.<\/p>\n<p>In Japan, <strong>Prime Minister Sanae Takaichi<\/strong> emphasized the government&#39;s intent to promote domestic investment through the <strong>Government Pension Investment Fund (GPIF)<\/strong>. Takaichi noted that the fund is already accumulating domestic alternative assets under existing guidelines to bolster the local economy. Analysts suggest this move is part of a broader strategy to support the yen and encourage household participation in Japanese financial markets.<\/p>\n<p>Energy markets monitored fresh data from <strong>Azerbaijan<\/strong>, where the Energy Ministry reported that <strong>BP (<a href=\"\/stock\/BP\">BP<\/a>)<\/strong> produced <strong>7.9 million tonnes<\/strong> of oil in the first half of the year. Total oil exports for the period reached <strong>10.5 million tonnes<\/strong>, while gas exports to Europe continued to play a critical role in regional energy security. Meanwhile, <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> reacted to renewed volatility in the Middle East following a projectile strike on a tanker approximately <strong>19 nautical miles<\/strong> east of <strong>Khasab, Oman<\/strong>.<\/p>\n<p>The <strong>S&amp;P\/ASX 200 (<a href=\"\/stock\/AXJO\">AXJO<\/a>)<\/strong> closed <strong>0.5% lower<\/strong> at <strong>8,796.70 points<\/strong>, tracking the broader global weakness in technology and mining sectors. In Europe, investors remained cautious as the <strong>Russian Defence Ministry<\/strong> confirmed strikes on Ukrainian port infrastructure in <strong>Odesa<\/strong> and <strong>Chornomorsk<\/strong>. These developments continue to complicate global trade routes and maintain upward pressure on shipping insurance and logistics costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global technology stocks tumbled as the high-flying &quot;AI trade&quot; went into reverse, with Japan&#39;s Nikkei 225 plunging 4.9% 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