China has taken the unprecedented step of shutting down 670 banks, roughly a quarter of its banking institutions, as part of a strategic push to consolidate smaller lenders. This move aims to strengthen the country’s financial system amidst concerns about economic slowdown. According to Fitch Ratings, the banks targeted for closure are primarily small and rural commercial banks that suffer from poor asset quality, weak capitalization, and governance issues, especially in underdeveloped regions. The government’s goal is to form fewer, larger, and financially robust banks to improve overall stability.

In the energy sector, Saudi Aramco’s CEO Amin Nasser issued a warning about the prolonged impact of the Iran-U.S. conflict on global oil supplies. He indicated that rebuilding global oil inventories could take up to two years due to current disruptions, which continue to fuel uncertainty in the markets. This perspective adds to trader concerns as the ongoing conflict poses risks to oil production and transportation, keeping prices volatile and supply tight for the foreseeable future.

Despite rising U.S. Treasury yields, the tech-heavy Nasdaq Composite index reached a new all-time high as investors remain optimistic about technology stocks. However, in the technology world, unease about artificial intelligence (AI) development persists. Alex Turner, a former researcher at Google DeepMind, warned during a New York City Council hearing that “misaligned” AI systems could become more dangerous than geopolitical challenges, including China’s aggressive AI development. His remarks highlight growing concerns about AI safety and governance as the technology evolves rapidly.

In financial markets overall, U.S. stock futures showed little change, with moderate gains in major indices like the S&P 500, Dow, and Nasdaq-100 futures. Asian markets were affected by regional holidays, with Japan’s Nikkei 225 rising 2.4%, while Australia’s S&P/ASX 200 remained flat. Additionally, AI-related job postings at large banks such as JPMorgan Chase have surged nearly 50% this year, reflecting the increasing integration of AI technologies in the financial sector despite broader apprehensions.