Tech stocks were on the rebound Wednesday following a brutal selloff the previous session.
"We believe this week's tech sell-off is similar to the other short-term selloffs we've seen this year, which typically don't last longer than a few days," State Street said. "As in the past, the sell-off involves markets with heavy retail presence (South Korea) and likely short-term traders (hedge funds and other tactical institutional teams) taking profits."
European defense stocks slid as bellwether Rheinmetall fell sharply following reports that Germany is abandoning plans to build a new warship model .
Oil prices fell on signs that shipping activity through the Strait of Hormuz is gradually resuming, with international authorities reporting improved safety conditions.
"Although negotiations remain complex and questions persist over the future governance of Hormuz , the market is increasingly pricing in a gradual normalization of Middle East energy flows," MUFG said.
