But tech’s loss has been value’s gain, exemplified by the 0.7% rise in the Dow.
That rotation has been the theme in Asia overnight. As an example, AI darlings on Japan’s Nikkei 225 like SoftBank Group are pulling back from highs, while cash pours back into beaten-down Toyota Motor.
The positive news for equity investors is that overall, Asia-Pacific stock indexes are higher.
Only tech-heavy Taiwan is underwater among the major benchmarks.
And while the Nikkei is up only half a percent, the broader Topix has rallied nearly 1.5%.
Geopolitics also bear close attention. With the first round of voting in France’s snap elections looming this weekend, sentiment could turn quickly.
For now, the far right’s overtures to the markets have been effective in allaying fears about a lack of fiscal restraint.
The euro has rebounded sharply as a result and sits back at around $1.0740 after having been as low as $1.0671 on Friday.
Elsewhere, keep an eye on developments in the European Commission’s dealings with Apple and with China.
Beijing wants the EU to scrap proposed tariffs on Chinese electric vehicle imports before they are due to take effect on July 4, and Chinese officials are trying to find a compromise in talks in Brussels this week.
Apple needs to change the way its App Store works or face potentially hefty fines for antitrust violations.
The EU has also been flexing its muscles with new sanctions on Russia, hitting gas exports for the first time.
New restrictions will prohibit transferring cargoes from one ship to another off EU ports, but stop short of an EU ban on LNG imports, which have risen since the start of the war in Ukraine.
