Tech Stocks Slide as Global Bond Rout Deepens – Europe Market Wrap

A widespread selloff in bond markets dragged equities lower, abruptly interrupting the artificial intelligence-fueled rally that had pushed the S&P 500 to repeated record highs.

Nasdaq 100 futures dropped 1.4%, while S&P 500 futures fell 0.9%. The declines capped a week in which chipmakers continued to drive a narrow market advance despite steadily rising bond yields and no breakthrough in efforts to reopen the Strait of Hormuz.

Government bonds sold off across the US, Europe and Asia as doubts intensified over whether Middle East oil supplies will return to normal anytime soon. Strong wholesale inflation data from Japan added to concerns that price pressures are building across the global economy.

The US 10-year Treasury yield climbed six basis points to 4.54%. Japan’s 30-year bond yield touched 4% for the first time since 1999. UK gilts also came under heavy pressure amid political uncertainty, with the 10-year yield jumping 15 basis points to 5.14%. The dollar headed for its longest streak of gains since March.

Brent crude rose 2.7% to trade above $108 a barrel.

Technology shares led declines across Europe and Asia as well, with the Stoxx 600 falling 1.3%. South Korea’s Kospi tumbled 6.1% as investors took profits in Samsung Electronics and SK Hynix. Nvidia fell 2.3% in premarket trading after a seven-session winning streak.

Political turmoil in the UK continued to unsettle markets as investors weighed the possibility of looser fiscal policy under a future replacement for Prime Minister Keir Starmer. Manchester Mayor Andy Burnham strengthened his position for a potential leadership bid, reviving concerns among bond investors after previous remarks suggesting the country was overly dependent on financial markets.