Tech Selloff Affects Stocks as Korean Shares Fall – Europe Market Wrap
Global markets came under pressure as a sharp selloff in high-flying Tech stocks sparked a broader risk-off move across asset classes. South Korea’s benchmark equity index, the KOSPI, fell into correction territory, while futures tied to the Nasdaq-100 Index slumped 2.8% and S&P 500 futures lost 1.4%.
The weakness was concentrated in AI-linked names, with memory-chip stocks among the biggest decliners after posting triple-digit gains earlier this year. The pullback follows Monday’s retreat in hyperscalers as investors increasingly question whether massive AI spending plans can generate returns sufficient to justify current valuations. Attention now turns to upcoming earnings from Micron Technology, whose shares have surged more than 300% since January.
The selloff extended beyond equities. Bitcoin headed for its largest decline in three weeks, while gold, silver and copper all moved lower as investors reduced exposure to risk assets. The Dollar strengthened toward its highest level of 2026 as demand increased for defensive positioning.
In fixed income, Treasuries caught a bid as traders trimmed expectations for additional Fed tightening this year and next, helping support bond prices. The move suggests investors are increasingly concerned that slowing growth and stretched valuations may outweigh inflation risks in the near term.
Oil also eased, with Brent crude falling for a second session toward $77.70 per barrel. Prices remained under pressure as markets took comfort from early progress in US-Iran negotiations, including Washington’s decision to grant Tehran a 60-day licence to resume international oil sales, easing concerns over global supply disruptions.
