Dow hits fresh record as oil prices tumble

Earlier in the day in Asia, technology companies again saw heavy losses as traders worried about whether massive investments in artificial intelligence will deliver long-lasting profits.

Chipmakers SK hynix and Samsung dragged down South Korea’s Kospi index after a rally on Friday.

The yen meanwhile gained against the dollar after US and Japanese authorities confirmed Monday that they had bought Japan’s currency on the open markets after months of weakness.

The yen was recently near its weakest point against the dollar level since 1986, hit by higher US interest rates, rising oil prices and capital outflows from Japan. On Monday afternoon, the dollar was trading at around 157 yen compared to above 163 yen last week.

The dollar was mixed against other major currencies.

Beyond the geopolitical risks, attention is also on the prospects for the US economy after the Federal Reserve held interest rates steady last week despite calls from some of its policymakers to raise rates to fight inflation.

“The focus as we move through the week will be the US non-farm payrolls report, which will be another test of the resilience of the US labor market,” said Kathleen Brooks, research director at the trading platform XTB. 

This week’s calendar includes monthly US jobs data for July as well as earnings from Disney, McDonald’s and SpaceX.

Despite falling on Monday, oil prices remain well above levels seen before the United States and Israel attacked Iran, sparking a war that has sharply curtailed Gulf exports of oil and gas and other key products.

Iran, for its part, said it is not currently negotiating with the United States.

“Our negotiations are with Oman to secure passage through the Strait of Hormuz,” the critical oil corridor, foreign ministry spokesman Esmaeil Baqaei said.