Stocks fell for a second day as investors rotated out of technology shares, deepening a selloff in chipmakers after the sector’s blistering rally earlier this year.
Equity-index futures pointed to further losses. MSCI’s Asia Pacific equities gauge slid 2.7%, heading for its lowest close in two months, while Japan’s Nikkei 225 Stock Average slumped 5.2%, set for its worst day since March.
Chip bellwethers tumbled with Taiwan Semiconductor Manufacturing Co. set for its biggest one-day decline since April 2025, and Japan’s Kioxia Holdings Corp. sank as much as 16%.
Netflix Inc. also weighed on sentiment, with shares falling 9% in extended trading after the company forecast a second straight quarter of slowing sales growth. Equity-index futures for the Nasdaq 100 Index dropped 1.4%, while European stocks were set to decline more than 1% at the open.
Elsewhere, Brent rebounded from Thursday’s losses as hostilities across the Middle East continued to escalate and shipping traffic slumped in the Strait of Hormuz. The commodity traded at about $85 a barrel and was up 12% for the week, on track for its biggest weekly gain since April and rekindling inflation concerns.
Technology stocks have come under pressure in recent weeks as investors increasingly question whether this year’s AI-driven rally has run too far, too fast. While softer US inflation has eased expectations of an immediate Federal Reserve interest-rate hike and Middle East tensions continue to drive oil prices, the focus remains on AI earnings for evidence that billions of dollars in spending will translate into returns.
