Investors rotate out of tech as expectations grow for aggressive Fed tightening despite a 16% monthly drop in oil prices.
Global equities declined sharply Tuesday, with technology stocks leading losses as markets priced in more aggressive Federal Reserve rate hikes. The STOXX 600 fell 1.2%, while Nasdaq futures dropped over 2.5%, extending Monday’s 1.3% slide. Seoul’s KOSPI posted its worst day since March, down 10%, amid broad-based tech weakness.
European semiconductor stocks mirrored declines in Japan and South Korea, while U.S. megacaps like Alphabet, Meta, and Microsoft retreated. SpaceX shares plunged nearly 17% after tapping the bond market post-IPO. S&P 500 e-mini futures lost 1.5%, reflecting risk aversion.
Brent crude dipped below $76 a barrel for the first time since early March, as vessel traffic through the Strait of Hormuz rose and physical market prices neared pre-war levels. The oil drop failed to lift equities, with investors favoring defensive sectors over AI-driven growth stocks.