Most Asian Stocks Fall After US Tech-Led Selloff: Markets Wrap
(Bloomberg) — Most Asian stocks dropped after a tech selloff dragged down US benchmarks and saw a rotation into more economically sensitive industries.
Japanese and Australian equities both opened lower. The US declines were fueled by concern advances in artificial intelligence will decimate software companies and hurt profitability across the tech industry. Advanced Micro Devices Inc. added to the bearish mood after giving a disappointing sales forecast.
Software stocks slipped in Asia, tracking losses in their US peers, on concern a ramp up in AI will crimp demand for the sector’s products. The selloff gathered pace after AI startup Anthropic released a productivity tool for in-house lawyers. That led to a slide in stocks associated with legal software and data services such as Experian Plc and London Stock Exchange Group Plc, and then snowballed to include much of the tech sector.
Despite overall losses, most shares in the S&P 500 actually rose. FedEx Corp., an economic barometer, extended a record-breaking rally. Walmart Inc. topped $1 trillion in market cap. Oil climbed as the US Navy shot down an Iranian drone headed toward an aircraft carrier in the Arabian Sea. Bitcoin fell for a second day.
“Our sense is that markets are churning underneath the surface as worries over AI capital spending battle with ‘hopes and dreams’ of broadening out as a result of an accelerating US economy,” said Chris Senyek, a strategist at Wolfe Research.
A Goldman Sachs Group Inc. basket of US software stocks sank 6% on Tuesday, its biggest one-day decline since April’s tariff-fueled selloff. The tech-heavy Nasdaq 100 Index fell 1.6%.
Bets on AI companies have dominated the US equity market for past three years, but a growing number of investors are now wagering that the run, led by the “Magnificent Seven” megacaps, is giving way to broader market participation. A marked rotation has taken place in 2026, with value shares far outpacing growth.
“Bifurcated action is characterizing today’s Wall Street trading, as tech surrenders the floor to cyclicals even as Palantir delivered a blockbuster beat-and-raise last night, which initially boosted optimism regarding AI prospects,” said Jose Torres at Interactive Brokers.
Bitcoin extended its almost four-month slide. The cryptocurrency’s slump through some important thresholds might have cascading effects leading to massive value destruction, investor Michael Burry said.
The dollar edged higher early Wednesday after dropping in the US session. Treasuries were little changed, with investors parsing the latest remarks from central bank speakers.
Federal Reserve Bank of Richmond President Tom Barkin said policy easing has bolstered the jobs market as officials now look to bring inflation back to the target. Fed Governor Stephen Miran said the absence of strong price pressures means rates need to be lowered again this year.
Corporate Highlights:
Super Micro Computer Inc. shares gained in late trading after the company gave a forecast for sales in the current quarter that signaled strong demand for its gear to run AI data centers. Prudential Financial Inc. announced it would voluntarily suspend new life insurance sales in Japan for 90 days, in a move to restore trust after some former employees engaged in financial misconduct. Banco Santander SA agreed to acquire Webster Financial Corp. in a $12 billion deal that will allow Spain’s largest bank to bet big on the US. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 9:47 a.m. Tokyo time Hang Seng futures fell 0.9% Nikkei 225 futures (OSE) fell 0.9% Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 was little changed Euro Stoxx 50 futures were little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1814 The Japanese yen fell 0.1% to 155.95 per dollar The offshore yuan was little changed at 6.9340 per dollar Cryptocurrencies
Bitcoin fell 0.1% to $76,060.21 Ether fell 1.5% to $2,248.52 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.28% Japan’s 10-year yield was unchanged at 2.255% Australia’s 10-year yield advanced five basis points to 4.89% Commodities
West Texas Intermediate crude rose 1.1% to $63.88 a barrel Spot gold rose 1% to $4,998.01 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rob Verdonck.
©2026 Bloomberg L.P.
