Tech selloff back in focus as we get into the new day
The mood music yesterday was a better one with US stocks posting a broader advance across the board. Tech shares led the way to start the week but now, we’re starting to see the ugly side of things creep back in today. The drop is being led by a big selloff in Asia, with the KOSPI especially down nearly 8%. From earlier: Samsung’s record profit fails to stop shares plunging, dragging KOSPI down
That’s leading to a more sour mood as we look to European trading now.
The Nikkei is also down roughly 2% on the day and we’re seeing the selloff extend to US futures too. While Dow futures are flattish, S&P 500 futures are down 0.3% with Nasdaq futures down 1.1% currently.
Semiconductors are once again struggling hard in overnight trading with the likes of Micron (-6.2%), Sandisk (-6.3%), Intel (-3.9%) all keeping lower.
Meanwhile, SpaceX shares are also struggling with a near 3% drop in overnight trading after erasing early gains yesterday to finish 1% lower.
All in all, the jitters from June look to be continuing into July. And that is going to make for quite a testing summer for US equities.
With investors now demanding more than perfection and wanting AI firms to justify their massive capex spending, the bare minimum just won’t cut it anymore. And adding to that, market players have to also weather the storm of a potentially more hawkish Fed. As such, the focus back on US inflation data especially is going to be crucial in deciding that outlook.
If anything, keep an eye out on Nvidia as price borders on the 200-day moving average at 191.13 currently. A firm break of that could spell more danger and reverberate to the market more broadly.
