Global equities diverge as Broadcom’s weak outlook and Fed rate hike bets spur a tech pullback, while Middle East de-escalation lifts sentiment.
Global stocks traded mixed Monday as a tech-driven selloff hit Asian markets, while European equities and U.S. futures stabilized after Iran signaled an end to military operations against Israel. Brent crude, up nearly 5% earlier, pared gains to 1.5% as geopolitical risks eased.
The tech rout followed Broadcom’s disappointing earnings outlook and a stronger-than-expected U.S. jobs report, fueling expectations of a Federal Reserve rate hike this year. Europe’s STOXX 600 remained flat, with regional bourses down 0.4% to up 0.1%, reflecting resilience amid limited tech exposure.
Investors cited stretched valuations after a prolonged rally, with Danske Bank noting markets were overdue for a correction. The shift in sentiment underscored fragility in tech-heavy indices despite broader macroeconomic stabilization.