US stocks generally struggled, with the S&P 500 recording its fourth consecutive day of losses, the longest such streak in 10 months. This downturn was largely driven by a significant selloff in the technology sector. The tech-heavy Nasdaq 100 also experienced a decline in this volatile trading period.
The tech weakness extended beyond the US, impacting Asian markets significantly. For instance, the KOSPI index in South Korea plummeted $8.01 \% and the Nikkei in Japan fell $4.54 \%, with SoftBank dropping approximately $14 \% following rumors of OpenAI's IPO delay. Other Asian indices, including the Shanghai Composite (down $2.14 \%) and the Hang Seng (down $1.87 \%), also closed lower.
Contributing to the tech downturn, the Magnificent 7 index saw a $2.54 \% decrease after Apple's $6.12 \% drop, following news that it would be increasing prices for its Macs and iPads. Despite the broader tech sector's struggles, the semiconductor industry presented a mixed picture. While shares of Micron Technology surged $15.7 \% after its earnings report, other major chipmakers like Intel and Advanced Micro Devices were down over $3.5 \% each, and Nvidia slid $1.7 \% in premarket trading. Ultimately, the Philly Semiconductor index managed to rise $3.59 \% overall, and the equal-weighted S&P and small-cap Russell 2000 also saw solid gains of $0.67 \% and $0.71 \% respectively, suggesting a more nuanced market than headline tech figures indicated.
In Europe, major indices mostly recorded gains, with the STOXX 600 reaching a record high, up $0.80 \%. The DAX climbed $1.03 \%, the CAC $0.55 \%, and the FTSE 100 $0.65 \%. This performance was partly attributed to investors pricing out further European Central Bank rate hikes, with the number of hikes by the December meeting falling to just $26$bps.
Overall, the market was characterized by persistent interest rate anxiety, with traders pricing in one $25$-basis-point rate hike and a nearly $27 \%$ chance of another by year-end. Meanwhile, cooling tensions in the Middle East reportedly helped lift the blue-chip Dow to record highs, contrasting with the tech sector's struggles.
