By Amanda Cooper and Chibuike Oguh<\/p>\n
NEW YORK\/LONDON, June 23 (Reuters) – Global stocks fell on Tuesday, dragged lower by a broad selloff in technology and semiconductor shares as investors continued taking profits on a long rally while bracing for more aggressive Federal Reserve action to fight inflation.<\/p>\n
On \u200cWall Street, the tech-heavy Nasdaq led losses, weighed down by semiconductor shares and some megacap stocks.<\/p>\n
Nvidia fell 4% and Tesla dropped nearly 6%. SpaceX shares reversed \u200can early decline to trade up nearly 1%. Chip stocks finished down nearly 8%.<\/p>\n
The Dow Jones Industrial Average lost 0.09%, the S&P 500 fell 1.4%, and the Nasdaq Composite fell 2.2%.<\/p>\n
“If you look at \u200bthe technical indicators, the SOX was at its most overbought level in the last three years so there’s definitely an element of expectations getting stretched, market positioning getting stretched, and valuations getting stretched,” said Amanda Agati, chief investment officer at PNC Asset Management Group.<\/p>\n
European shares also declined, with the STOXX 600 down 0.73%, pressured by losses in semiconductor and chip-equipment makers. The weakness followed declines across Asia, where Seoul\u2019s Kospi index plunged 10% in its sharpest one-day drop since March. MSCI’s gauge of stocks across the globe fell \u200c1.66%.<\/p>\n
“This looks like a largely technical move, driven in \u2060part by profit-taking ahead of Micron’s earnings,” said Ross Mayfield, investment strategy analyst at Baird. “The trade has been highly concentrated and flow-driven, which makes it vulnerable to relatively small shifts in sentiment. In that sense, it doesn\u2019t appear to be closely tied to the \u2060fundamentals of the AI story, but rather to the heavy concentration and strong inflows into tech and global tech over the past few months now starting to unwind.”<\/p>\n
OIL REMAINS BELOW $80 A BARREL<\/p>\n
Oil prices remained subdued, with Brent crude settling below $80 a barrel as tanker traffic through the Strait of Hormuz increased and physical market prices neared pre-conflict levels.<\/p>\n
The U.S. agreed to \u200bwaive \u200bsanctions on Iran for 60 days from Monday, after the first round of talks under a \u200bnascent peace deal that was struck last week on ending \u200cmore than three months of war.<\/p>\n
While lower oil prices would typically support equities, investors’ focus has shifted to the inflation outlook and central bank policy. Markets now expect the Fed to take a firmer stance on inflation under Chair Kevin Warsh.<\/p>\n
U.S. Treasury yields have surged in recent sessions, with 2-year yields \u2014 highly sensitive to rate expectations \u2014 hitting 16-month highs. On Tuesday, both 2- and 10-year yields were modestly lower on the day, at 4.23% and 4.50%, respectively.<\/p>\n
Money markets are now close to fully pricing in a rate hike by September, helping to push the dollar index to a one-year high against a basket of currencies. The index was last up 0.37% at 101.38.<\/p>\n
“The \u200cdata to me does not suggest that they need to be raising rates. It suggests \u200bthey need to sit on pause for a while and see if the Middle East conflict-driven inflation \u200bdata unwinds as a function of the negotiations and the deal,” Agati said.<\/p>\n
YEN \u200bAT 40-YEAR LOWS<\/p>\n
The dollar\u2019s strength has weighed heavily on the Japanese yen, which hovered near 40-year lows at 161.56 per dollar. The \u200ceuro slipped below $1.138 to its lowest level in a year as \u200binvestors scaled back expectations for further European \u200bCentral Bank tightening.<\/p>\n
Japanese Finance Minister Satsuki Katayama said she discussed global financial markets with U.S. Treasury Secretary Scott Bessent on Monday, which analysts said could signal a rising risk of intervention to support the yen.<\/p>\n
In Britain, the pound fell 0.40% to $1.3194 on the 10th anniversary of the Brexit vote. Sterling remained \u200bunder pressure after Prime Minister Keir Starmer said he \u200cwould resign, paving the way for what is expected to be a smooth political transition to Andy Burnham.<\/p>\n
Gold also declined, falling 1.93% to $4,109.49 an \u200bounce as higher rate expectations reduced the appeal of non-yielding assets.<\/p>\n
In cryptocurrencies, bitcoin fell 3.07% to $62,397.18. Ethereum declined 4.13% to $1,661.48.<\/p>\n
(Reporting by Chibuike Oguh in New York; Additional reporting by \u200bJose Joel and Rocky Swift in Tokyo; Editing by Aurora Ellis and David Gregorio)<\/p>\n","protected":false},"excerpt":{"rendered":"By Amanda Cooper and Chibuike Oguh NEW YORK\/LONDON, June 23 (Reuters) – Global stocks fell on Tuesday, dragged…\n","protected":false},"author":2,"featured_media":757133,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[270112,45,49,48,66212,13234,2071,38564,166,3098],"class_list":["post-757132","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-amanda-agati","tag-business","tag-ca","tag-canada","tag-european-shares","tag-expectations","tag-federal-reserve","tag-global-stocks","tag-nasdaq","tag-nasdaq-composite"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/757132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=757132"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/757132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/757133"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=757132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=757132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=757132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}