Asian stock markets sharply declined as investors sold some of this year’s top-performing technology stocks, while awaiting further developments in U.S.-Iran peace talks.
MSCI regional stock indices fell more than 2% after hitting record highs, while South Korea’s Kospi plunged over 6%, as markets renewed concerns that the rally in heavyweight chip stocks had become excessive. The Asia tech index ended its eight-day winning streak. S&P 500 futures dropped 0.6%, and Nasdaq 100 futures declined 1.1%. Oil prices edged lower.
These movements in Asian stock markets came after the S&P 500 fell 0.4% on Monday, weighed down by declines in large tech stocks and rising bond yields. SpaceX’s shares plunged 16% for the third consecutive trading day, erasing tens of billions of dollars in market value, after the company announced plans to issue investment-grade bonds, expected to be a major borrowing effort.
Overnight weakness in large tech stocks weighed on market sentiment, despite ongoing progress in the U.S.-Iran peace deal, as fundamental disagreements remain between the two countries over the terms of the agreement.
Market focus has shifted to quarterly results released Wednesday by memory chip maker Micron Technology, a crucial test of whether artificial intelligence spending can sustain its momentum—its stock has surged more than 300% this year—and the broader tech rally.
Artificial intelligence trading has been a key pillar of global stock markets this year, helping the index measuring world equities overcome challenges posed by Middle East conflicts and reach new record highs consecutively, most recently on June 2.
In the foreign exchange market, the yen is hovering near its lowest level since 1986. Forex traders remain highly cautious about potential intervention following a phone call between Japanese Finance Minister Mayumi Kajiyama and U.S. Treasury Secretary Scott Bizen.
Technical Analysis:
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Gold: Yesterday, the buy limit trade within our green signal zone performed well, delivering solid returns on both tests. Currently, the price has dropped below 4150. For today, we are slightly adjusting our strategy to focus on a blue momentum breakout and pullback, followed by capturing rebounds after identifying yellow low-sweep liquidity. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: The Nasdaq surged overnight but pulled back, hitting a new low in the past three trading sessions. For today, we will keep the rebound trade after the low sweep liquidity; meanwhile, we’ll monitor whether the price can re-enter the upper blue zone. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: After the price hit the yellow zone indicated by our plugin yesterday, liquidity was quickly swept and prices dropped. For today, we maintain the same strategy—waiting for a price rebound to complete the liquidity sweep before entering a short position. Key zones are highlighted in the yellow area on the plugin. For precise levels, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
16:00 Eurozone June manufacturing PMI preliminary value
16:30 UK June Manufacturing PMI (Preliminary)
18:00 UK June CBI Industrial Order Expectations Differential
