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 No one can say with absolute certainty that there is an artificial intelligence bubble in the stock market. But almost everyone is looking for one. And on Tuesday, there were signs of its presence. A bruising selloff, or “chip-wreck,” in several technology giants was the latest trigger for concern that the AI frenzy that’s powered the equity bull market might be overblown. The rout engulfed global stocks and sent the Nasdaq 100 down by 3.3%. A closely watched gauge of chipmakers, which had doubled from war-driven lows, slid about 8%. Losses were more pronounced in Asia, with South Korea’s Kospi plunging 10% from a record. Here’s your markets wrap. —David E. Rovella What You Need to Know TodaySpaceX stock managed to break its three-day losing streak, closing up today a little less than 1%. Before the bumpy ride of its past few sessions, the company was enjoying plenty of fanfare, having made history with the biggest-ever initial public offering. But in the debt markets, it’s encountering more scrutiny. Elon Musk’s rocket, satellite and AI conglomerate raised $25 billion of bonds in five parts on Tuesday, its debut bond offer, and is said to be paying a relatively wide premium over Treasuries. In a telling sign, the greatest demand was for the deal’s shortest-dated — and thus least risky — tranche. An independent gauge of US business activity expanded at its fastest pace in five months, bolstered by a surge in demand for manufactured goods, according to the S&P Global flash composite purchasing managers index. The index rose to 52.2 in June, with figures above 50 indicate expansion. While manufacturing is rising, the service sector “continues to grow at an especially subdued pace,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “We remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears.”  Overall input prices continued to rise but at a slightly slower pace, and supplier delivery times lengthened. With supply chain delays growing more widespread — and additional price hikes likely coming down the pipeline — manufacturers built their stockpiles of materials. With materials prices still high, firms sought other ways to cut costs, namely by terminating workers. Headcount shrank at both factories and service providers in June. The group’s manufacturing employment index slumped to the lowest level since May 2020. Service providers, meantime, raised prices at a faster rate. While the Supreme Court on Tuesday handed down victories to Cisco and ExxonMobil on human rights issues and Cuban oil assets, respectively, the Trump administration saw success in lower courts dealing with its deportation crackdown. A US appeals panel lifted a temporary hold on President Donald Trump’s rapid removal of undocumented immigrants without due process from anywhere in the US. The ruling, written by Trump-appointee Justin Walker, allows — in the words of a lower court judge the panel overturned — the government to deprive detainees “of any meaningful opportunity to disprove its allegations” before deportation. Walker said the government is operating within its legal discretion. Meanwhile, the Associated Press reported two GOP-appointed judges in Texas sentenced eight protesters accused by the administration of having ties to antifa, a decentralized anti-fascism movement, to decades in prison in relation to a shooting outside a Texas immigration detention center. The protestors’ convictions and severe sentences, combined with the administration’s recent charging of 15 people in Minnesota for allegedly impeding its deportation campaign, are seen by critics as a coordinated effort by Trump to squelch dissent despite First Amendment free-speech rights.  Residents protest near where Border Patrol agents shot and killed an unarmed protestor in Minneapolis earlier this year. Photographer: Jaida Grey Eagle/Bloomberg When Donald Trump Jr. was in India last November for a trip that included a wedding and a wildlife sanctuary tour, he made an unpublicized stop in the bustling city of Ahmedabad in the Western state of Gujarat. The president’s son is said to have had a private meeting there with Indian billionaire Gautam Adani, whose namesake ports-to-energy conglomerate is headquartered in the city. The meeting, which hasn’t been previously reported, came around a year after US prosecutors, during the Biden administration, accused the 63-year-old Adani Group chairman and his nephew Sagar Adani of orchestrating an alleged bribery scheme in India. They have consistently denied the allegations. Last month, the Trump administration moved to drop those charges. Some Democrats in Congress have questions.  Gautam Adani Photographer: Indranil Aditya/Bloomberg Ukraine’s recent, dramatic counter-assault on Russia, and particularly its use of drones to hobble the invading nation’s energy industry, appears to be bearing fruit. The Kremlin is weighing a ban on exports of diesel to avoid domestic shortages after Ukraine intensified attacks on its refineries. Russia is second only to the US in global export rankings for diesel, with Turkey and Brazil making the bulk of the purchases. The move could potentially put extra pressure on international fuel supplies, which are already under strain due to the disruption caused by the Iran war. The possible prohibition of sales of diesel to foreign markets would come in addition to existing restrictions on flows of gasoline and jet fuel. What You’ll Need to Know TomorrowFor Your CommuteBloomberg Power Players - New York: Set against the backdrop of the US Open Tennis Championships, Bloomberg Power Players returns to New York on Sept. 10, bringing together the leaders shaping this global industry. From athletes and team owners to commissioners and investors, this event will gather the most influential voices for market-moving conversations on the multitrillion-dollar sports economy. Learn more here. More from BloombergEnjoying Evening Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too:
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