As Iran Conflict Drags On, Tech Sector Stocks Fall – Europe Market Wrap

A drop in technology equities pushed stocks lower in the US and Asia. Oil prices dipped a little, while Treasury yields declined as traders waited for signs of progress toward a Middle East peace deal.

Nasdaq 100 futures dropped 0.8%. Those for the S&P 500 down 0.5%, leaving the benchmark on track for its longest losing streak since March. The South Korean Kospi index led Asia’s losses. Europe’s Stoxx 600 index increased 0.7% as media and financial services outperformed.

A stock boom fuelled by the development of artificial intelligence is failing after propelling global equities to new highs in the face of rising bond yields and high petroleum costs. At the same time, trailing industries, such as healthcare, are catching up after underperforming in recent weeks.

According to a BofA study, money managers upped their equity exposure to the highest level on record this month, leaving them the most overweight since January 2022.

In other asset classes, Brent fell 1.2% to $110 a barrel after Trump stated that the US has had “very big discussions with Iran.” Treasury yields fell throughout the curve, but their European counterparts fluctuated between gains and losses. The Dollar gained 0.3%.