Tech Rout Drives Second Day of Global 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 worries over lofty valuations. Tech stocks also led losses in Europe, while South Korea’s Kospi — a major AI play — slid more than 2% in Asia.
Treasuries advanced as investors sought safety, with the 10-year yield falling one basis point to 4.07%. Gold rose for the first time in four sessions. Outside the technology sector, the equity selloff showed signs of easing, with S&P 500 futures holding steady and Russell 2000 contracts edging higher.
“The selloff was rather driven by profit-taking and less by fundamentals,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “With valuations stretched, a correction is always a possibility and might be even helpful as weak hands and leverage are washed out.”
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 trimmed about $500 billion in combined market capitalization from the Philadelphia Semiconductor Index on Tuesday and a Bloomberg gauge of Asian chip stocks on Wednesday.
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 8:31 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures fell 0.2% Futures on the Dow Jones Industrial Average rose 0.1% The MSCI Asia Pacific Index fell 1% The MSCI Emerging Markets Index fell 0.9% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1493 The Japanese yen was little changed at 153.59 per dollar The offshore yuan was little changed at 7.1293 per dollar The British pound rose 0.1% to $1.3040 Cryptocurrencies
Bitcoin rose 1.2% to $101,451.14 Ether rose 2.5% to $3,294.54 Bonds
The yield on 10-year Treasuries declined two basis points to 4.07% Germany’s 10-year yield declined one basis point to 2.64% Britain’s 10-year yield declined one basis point to 4.41% Commodities
Brent crude fell 0.1% to $64.37 a barrel Spot gold rose 1.2% to $3,981.21 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy.
©2025 Bloomberg L.P.
