Tech Slide Drives Second Day of Stock Losses: Markets Wrap
(Bloomberg) — A selloff in technology stocks dragged global markets lower for a second day as investors continued to pull back from the biggest beneficiaries of the artificial-intelligence boom.
Nasdaq 100 futures fell 0.2% after the index logged its steepest drop in nearly a month amid concerns over lofty valuations. Moves among the so-called “Magnificent Seven” heavyweights were mixed in premarket trading. Super Micro Computer Inc. plunged on disappointing results, while Advanced Micro Devices Inc. slipped after its update failed to impress.
Outside the technology sector, the equity selloff showed signs of easing, with S&P 500 futures trimming losses and the Russell 2000 index of small-cap stocks on track for its first gain this week. Gold rose for the first time in four sessions. US Treasuries and the dollar were little changed.
The pause in the global stock rally came after the booming outlook for AI and expectations of continued Federal Reserve rate cuts sent the US benchmark up more than 35% from its April lows. Those gains, however, have become increasingly concentrated, prompting some Wall Street chiefs to describe a pullback as a healthy reset.
The selling wiped out about $500 billion in combined market capitalization from the Philadelphia Semiconductor Index on Tuesday and a Bloomberg gauge of Asian chip stocks on Wednesday.
South Korea’s Kospi — a major AI play — slid more than 2% in Asia. Tech stocks also led losses in Europe.
“I see the current modest tick-up in US futures as a technical rebound rather than the selloff fading out,” said Alexandre Baradez, chief market analyst at IG in Paris. “When you look at volatility gauges in the US, you notice that there has been way more nervousness than usual during the last rally, and that’s not a good sign.”
What Bloomberg strategists say…
While European stocks may come under pressure from the global risk-averse mood, their relative cheapness means that any selloff will be milder than what we saw on Wall Street on Tuesday.
— Ven Ram, MLIV strategist. For full analysis, click here.
Corporate News:
Novo Nordisk A/S pared its forecast for a fourth time this year, citing lower-than-anticipated sales of its blockbuster drugs Wegovy and Ozempic. BMW AG’s profit margin came in toward the lower end of its guidance in the third quarter as tariffs and intense competition in China squeezed earnings. Volkswagen AG plans to develop its own advanced semiconductor chip to power advanced driver assistance systems. Toyota Motor Corp. raised its annual profit guidance after Japan’s trade deal with President Donald Trump avoided a worst-case-scenario for tariffs on cars and auto parts. Apple Inc. is preparing to enter the low-cost laptop market for the first time, developing a budget Mac aimed at luring away customers from Chromebooks and entry-level Windows PCs. Nintendo Co.’s stock rose by its most in six months after the company raised its Switch 2 outlook, a strong signal of confidence in the marquee console’s momentum ahead of the critical holiday season. Google and Epic Games Inc., maker of the popular Fortnite game, reached a settlement in their long-running antitrust fight over how developers distribute and monetize apps on Android phones, according to a court filing. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.3% as of 9:57 a.m. London time S&P 500 futures fell 0.1% Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index fell 1.1% The MSCI Emerging Markets Index fell 0.9% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1483 The Japanese yen was little changed at 153.69 per dollar The offshore yuan was little changed at 7.1317 per dollar The British pound rose 0.1% to $1.3037 Cryptocurrencies
Bitcoin rose 1.7% to $101,955.51 Ether rose 2.9% to $3,307.82 Bonds
The yield on 10-year Treasuries was little changed at 4.08% Germany’s 10-year yield was little changed at 2.65% Britain’s 10-year yield was little changed at 4.43% Commodities
Brent crude rose 0.5% to $64.74 a barrel Spot gold rose 1% to $3,971.19 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Julien Ponthus.
©2025 Bloomberg L.P.
