Emerging-market stocks slumped, with a key gauge sliding into technical correction on mounting concerns the outlook for artificial intelligence no longer justifies the industry’s elevated valuations.

Most developing-world currencies fell Thursday as the US launched fresh strikes against Iran, sparking a flight to haven assets that pushed the dollar higher.

An index tracking emerging-market currencies rose Wednesday as the dollar weakened after softer-than-expected US producer prices drove traders to scale back wagers on Federal Reserve interest-rate increases this year.

Emerging-market assets rallied after a cooler-than-expected US inflation report prompted traders to pare bets on imminent Federal Reserve interest-rate hikes, boosting demand for riskier assets.

Brazil presidential candidate Flávio Bolsonaro said the former head of Caixa Economica Federal is joining his campaign as an economic adviser, fueling expectations that she could become finance minister if he is elected.

Cotton futures in New York surged to the highest since December 2024 as traders weigh a preliminary government US planting report against an outlook for tighter global supplies this year.

Cocoa futures climbed, reversing earlier losses, on signs of slower port arrivals in the world’s top supplier Ivory Coast.

Cocoa futures fell to a two-year low in London after Europe’s cocoa processing posted a steeper-than-expected slump, showing the extent of demand destruction as the industry reels from the lingering impact of record prices.

Cocoa in New York plunged the most intraday since July 2024 as exporters took advantage of buying related to index rebalancing to lock in more favorable prices.

Cotton futures in New York surged to the highest in eight weeks as traders weigh an outlook for tighter supplies this year and volatility in oil markets.