NEW YORK, Dec 18 — MSCI’s global equities gauge fell yesterday, pressured by US technology stocks, while silver prices hit a record high and gold rose for a seventh straight day on renewed hopes for Federal Reserve rate cuts and after US President Donald Trump’s latest move in Venezuela created safe-haven demand.

Oil prices settled higher after Trump ordered a “blockade” of all sanctioned oil tankers entering and leaving Venezuela, as Washington increased pressure on Nicolas Maduro’s government by targeting its main source of income.

Elsewhere, Fed Governor Christopher Waller, who is expected to be interviewed as a potential replacement for Fed Chair Jerome Powell, said the US central bank has room to cut interest rates amid signs of job market weakness.

In US equities, technology stocks were weighing down the S&P 500 amid the latest fears of an artificial intelligence bubble. Shares of AI chip leader Nvidia were the biggest drag, closing down 3.8 per cent. Reuters reported that Alphabet’s Google is working to erode Nvidia’s software advantage.

Oracle shares closed down 5.4 per cent even after it looked to reassure investors by announcing that talks for an equity deal to support a data centre project were on schedule and do not include Blue Owl Capital, after a report of stalled negotiations between the two companies.

“It does appear there is now real market fatigue in this singular AI infrastructure story, and the circularity issue in revenue, the rationalisation of capex, and the fact that not all players can win at once, are seemingly becoming more accepted by markets,” said David Bahnsen, chief investment officer at the Bahnsen Group.

Ross Mayfield, investment strategist at Baird Private Wealth Management, said there was “percolating anxiety about the AI trade.”

On Wall Street the Dow Jones Industrial Average fell 228.29 points, or 0.47 per cent, to 47,885.97, the S&P 500 fell 78.83 points, or 1.16 per cent, to 6,721.43 and the Nasdaq Composite fell 418.14 points, or 1.81 per cent, to 22,693.32.

MSCI’s gauge of stocks across the globe fell 8.16 points, or 0.81 per cent, to 994.69.

Earlier, the pan-European STOXX 600 index ended its trading session virtually unchanged.

Investors pushed US Treasury yields higher as they waited for the latest inflation reading, due today. Traders have been struggling to assess delayed data as it shows a less clear picture of the US economy after a 43-day federal government shutdown.

The yield on benchmark US 10-year notes rose 0.8 basis points to 4.157 per cent, from 4.149 per cent late on Tuesday while the 30-year bond yield rose 0.6 basis points to 4.8293 per cent.

The two-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 1 basis point to 3.489 per cent.

In currencies, sterling fell after an unexpected drop in UK inflation all but guaranteed the Bank of England would cut interest rates, while the dollar rose as markets awaited central bank decisions around the world and weighed Fed commentary. The UK’s pound weakened 0.36 per cent to US$1.3372.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.2 per cent to 98.41.

The euro was down 0.06 per cent at US$1.1739 with the European Central Bank in the spotlight today, when it is expected to keep rates steady.

Against the Japanese yen, the dollar strengthened 0.67 per cent to 155.74 as investors bet that Japan’s central bank would hike rates tomorrow.

Regaining some ground lost in the previous four sessions, oil rallied yesterday after Trump’s Venezuelan blockade order raised some concerns about supply.

US crude settled up 1.21 per cent, or 67 cents, at US$55.94 a barrel and Brent settled at US$59.68 per barrel, up 1.29 per cent, or 76 cents, on the day.

In precious metals, silver prices surpassed US$66 an ounce for the first time and gold firmed, as hopes of rate cuts and escalating geopolitical tensions sent some investors into safer bets.

Spot silver rose 4.2 per cent to US$66.46 while spot gold rose 0.94 per cent to US$4,344.09 an ounce. US gold futures rose 1.09 per cent to US$4,351.40 an ounce. — Reuters