Stocks sell off globally as France imposes riot curfews and Saudi Arabia cancels ‘Davos in the Desert’

Global equities came under pressure before the New York open after steep declines in Asian and European trading. S&P 500 futures were marginally lower, while Nasdaq futures also fell as investors absorbed a rise in oil prices, a weak technology debut and renewed geopolitical concerns.

Oil rises despite increased regional supply

Oil climbed to $111 per barrel even though supplies from the Middle East had increased in recent days. The move followed Saudi Arabia’s cancellation of its flagship Future Investment Initiative meeting, widely known as “Davos in the Desert.”

The decision came after Houthi attacks on the airport in Riyadh. The group also struck two tankers in the Strait of Hormuz on Friday, adding to concerns surrounding a key energy route.

Weak AI debut adds to investor caution

Market sentiment was also affected by the debut of South Korean AI cloud provider Elice. The company raised $150 million in its initial public offering, but its shares fell 30% on their first trading day. The sharp decline underscored lingering investor skepticism toward AI-related stocks.

Several prominent executives had been scheduled to attend the Saudi event, including Alphabet president Ruth Porat, Goldman Sachs CEO David Solomon and BlackRock CEO Laurence Fink. Its cancellation removes a major forum for business and investment discussions.

Bond yields signal additional pressure

France’s 10-year bond yield reached 4.94%, its highest level since 2002. Together with the oil surge and weak IPO performance, the move added to the pressure facing global markets as trading shifted toward the United States.