SynopsisAsian markets saw a dip, led by a pullback in heavyweight chip stocks after a strong rally. US futures remained steady following a volatile session on Wall Street, where tech giants like Apple experienced significant declines. Investors are closely watching the sustainability of high tech valuations amid concerns over AI spending and potential interest rate adjustments by the Federal Reserve.AgenciesOil was in focus again after a projectile strike on a vessel in the Strait of Hormuz saw Brent crude climb on Thursday, snapping a three-day decline. Prices edged lower in early Asia tradingStocks in Asia slipped in early trading as heavyweight chip shares gave back some of the gains from Thursday’s blistering rally.A gauge of Asian equities was down 1.1%, while South Korea’s tech-heavy Kospi dropped over 3%. US futures were little changed. The moves followed a choppy session on Wall Street, marked by heightened volatility in the tech sector. The S&P 500 ended flat, failing to sustain an early rally fueled by Micron Technology Inc., as Apple Inc.’s shares slid 6.1%. The iPhone maker led the Magnificent Seven lower after it raised prices on Macs, iPads and home devices.Oil was in focus again after a projectile strike on a vessel in the Strait of Hormuz saw Brent crude climb on Thursday, snapping a three-day decline. Prices edged lower in early Asia trading. Meanwhile, bond traders priced in slightly lower expectations for a Federal Reserve interest-rate hike in the months ahead after the central bank’s favored inflation gauge rose less than estimated.The equity market’s recent swings highlight investors’ growing unease over whether the tech giants that have powered the rally for much of the past two years can continue to justify the high expectations embedded in share prices. Concerns over AI spending have driven sharp moves in chip stocks this week, and while those worries eased after Micron’s results, volatility in the sector remains high.“A few cracks have developed in the tech sector recently,” said Matt Maley at Miller Tabak. “Therefore, we believe it will be extremely important to watch how these hyperscalers trade going forward because if they continue to decline, it’s going to make it very tough for the rest of the market to advance.”The Nasdaq 100 Index finished up 0.8% on Thursday, after having climbed as much as 2.1%. Besides Micron’s rally following its blockbuster results and outlook, Qualcomm Inc. shares also jumped after it forecast annual sales of more than $15 billion from artificial intelligence components in data centers by fiscal 2029.That optimism was missing in early Asian trading, with shares of SK Hynix Inc., Samsung Electronics Co. and Kioxia Holdings Corp. among the biggest drags on the regional benchmark. Elsewhere, OpenAI is leaning toward holding off on an initial public offering until 2027, the New York Times reported, citing three people involved in the company’s deliberations.Meanwhile, the Fed’s preferred inflation gauge, the personal consumption expenditures price index, rose 0.4% in May, below economists’ median estimate for a 0.5% increase. The annual rate accelerated to 4.1%, well above the Fed’s 2% target. A separate report showed the US economy grew at an annualized 2.1% pace in the first quarter, faster than previously estimated.Interest-rate swaps linked to future Fed rate decisions showed a drop in wagers on a hike this year, pricing in about 34 basis points of tightening by the December policy meeting versus some 36 basis points at Wednesday’s close. The chance of a rate increase next month dwindled to about one-in-three.Federal Reserve Bank of New York President John Williams said interest rates are well positioned to bring inflation back toward the central bank’s target.“The worst of inflation and consumer angst may be mostly behind us,” said Brian Jacobsen at Annex Wealth Management. “As long as gasoline prices trend lower, inflation expectations will likely follow suit.”In commodities, gold was steady after rebounding above $4,000 an ounce in the previous session as traders tempered expectations for interest-rate hikes.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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