World stocks edge lower as tech selloff drags markets
Global Market Performance and Key Drivers
By Chibuike Oguh
NEW YORK, June 26 (Reuters) - Global equity markets edged lower on Friday, set for a weekly decline as investors kept taking profits on high-flying technology and chip stocks, while crude oil prices slumped as more tankers left the Strait of Hormuz.
On Wall Street, all three indexes finished slightly lower in choppy trading as losses in industrials, technology and energy offset gains in healthcare and real estate stocks.
The S&P 500 and the Nasdaq notched weekly losses while the Dow was headed for a weekly gain.
Technology and Chip Stocks Lead Declines
Chip stocks lost 5.3%, set for a weekly loss of 7.7%, the largest weekly decline since March 2025.
The Dow Jones Industrial Average fell 0.09%, the S&P 500 lost 0.05% and the Nasdaq Composite fell 0.24%.
Analyst Insights on Market Rotation
"It's a combination of a needed and healthy period of consolidation following the historic run since March and a dramatic rotation from tech and everything else," said Mark Hackett, chief market strategist at Nationwide.
"Overall, the selloff is modest when put in context, and I expect we resume higher once this period of consolidation concludes since investors still have a buy-the-dip mentality and fundamentals remain solid."
Inflation and Tech Sector Concerns
Price hikes announced by Apple had fueled worries about structural inflation from massive spending by AI giants and limited availability of key tech components.
Regional Market Movements
Europe and Asia
European stocks fell nearly 0.7%, with technology stocks shedding 1.17%.
MSCI's index of Asian stocks outside Japan fell nearly 3%. South Korea's KOSPI lost as much as 5.8%.
MSCI's gauge of stocks across the globe fell 0.53% and was set for a 2% loss for the week.
Commodities and Currency Updates
Oil Prices Fall Sharply
Supply Developments and Market Impact
Crude prices tumbled on easing supply concerns as more oil tankers exited the Strait of Hormuz, even though a cargo vessel was hit near Oman on Thursday.
Refining giant Saudi Aramco resumed oil loading on Friday at its Ras Tanura terminal in the Gulf after a nearly four-month halt, shipping data from LSEG showed.
Brent crude futures fell 4.34% to settle at $72 per barrel.
Currency Market Movements
Yen Weakness and Dollar Strength
The yen teetered near its weakest level in 40 years against the dollar at 161.76, beyond the 160 level that many see as a line in the sand for Japanese authorities.
The euro was up 0.14% at $1.1385 but was set for a second consecutive weekly loss against the dollar.
The dollar index eased but was headed for a second straight weekly gain against peers. The index fell 0.16% to 101.35.
Bond and Gold Market Overview
In bonds, U.S. Treasury yields fell. The yield on benchmark U.S. 10-year notes fell 1.16 basis points to 4.38%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 2.48 basis points to 4.096%.
Spot gold rose 1.06% to $4,068.72 an ounce.
(Reporting by Chibuike Oguh in New York; Editing by Chizu Nomiyama and David Gregorio)
