Tech Leads Global Indexes Lower – Asia Market Wrap

Global stocks paused after a record-breaking run, with a sharp selloff in heavyweight technology shares dragging markets lower and futures indicating further declines.

Contracts for the Nasdaq 100 index declined 0.5% after the gauge had its second-worst drop since April’s tariff shock on stock rotation. Futures for the S&P 500 retreated 0.3% and those for European stocks fell 0.7% after Asian shares tumbled the most in more than two weeks. Taiwan Semiconductor Manufacturing and SoftBank led the declines.

Oil rose 0.2%, recouping some losses from the prior session. A gauge of the dollar extended its gains to a third day. The New Zealand dollar weakened and bonds rallied after the central bank lowered rates by 25 basis points and suggested there was scope for more cuts.

Investors pared back positions in technology stocks – the market’s longtime leaders – amid growing concern that the rally since April has advanced too far and too quickly. That momentum will be further tested this week as focus turns to Jackson Hole, Wyoming, where Federal Reserve Chair Jerome Powell is set to speak on Friday with traders firming up bets on a September cut.