Stocks and dollar slide as tech rout deepens
SPY•A selloff in technology shares spread across global markets, with South Korea’s KOSPI plunging almost 8% and Japan’s Nikkei 225 falling 5%. Nasdaq futures dropped 1.25%, while traders priced a 75% chance the Fed would hold rates at its October 28 meeting.
1. Tech selloff spreads
A sharp technology-stock selloff weighed on global equity markets and the dollar on Thursday, as high interest rates put pressure on heavily backed data-centre and AI investments. Nasdaq futures pointed more than 1% lower after the Nasdaq and S&P 500 recorded their biggest one-day drops since July on Wednesday.
2. Asia hit hard
South Korea’s KOSPI plunged almost 8% in its seventh consecutive decline, while Japan’s Nikkei 225 fell 5% for its sixth straight drop. Samsung Electronics sank nearly 10%, while SK Hynix and Kioxia Holdings fell more than 11% each. TSMC shares dropped 2% despite record profits, as the chipmaker cited “macroeconomic uncertainties.”
3. Rates and commodities
US 10-year Treasury yields recorded their biggest daily drop in more than a year, moving back toward 5%, and gold gained 1%. Brent crude fell nearly 2% to $104 a barrel. Fed funds futures priced a 75% probability of the Fed holding rates at the end of its October 28 meeting; the dollar slipped from an 18-month peak.
