This content was published on
July 2, 2026 - 10:48
4 minutes
(Bloomberg) — The latest bout of volatility in technology stocks entered a second day, with chipmakers in South Korea bearing the brunt of the selling. The dollar fell and Treasuries wavered ahead of the June US payrolls report.Nasdaq 100 futures dipped 0.4% after semiconductors led Wall Street lower in the previous session. S&P 500 contracts were flat. Memory makers SK Hynix Inc. and Samsung Electronics Co. lost a combined $290 billion in value to drive a 7.9% slump in South Korea’s Kospi index. In Europe, the Stoxx 600 rose 0.5%, with technology among only three of the 20 index sectors to lose ground.The frequent swings in the market’s biggest drivers come as traders react to any sign that a near-parabolic rally in chipmakers, the biggest beneficiaries of the vast outlays on AI infrastructure, has run too far. In the latest instance, Meta Platforms Inc.’s plan to sell computing power raised questions about a glut of capacity.Meanwhile, investors are rotating into laggards that stand to benefit from a strengthening economic outlook just as money-market bets on tighter monetary policy recede. Consumer-orientated stocks led gains in Europe on Thursday, tracking Wednesday’s US moves when a majority of S&P 500 stocks advanced.By contrast, memory, storage and processing names were again among the biggest decliners in US premarket trading.“The market recognizes the risks associated with a potential overvaluation in the tech sector,” said Guillermo Hernández Sampere, head of trading at MPPM. “Whether a major shift away from the tech sector is underway will become apparent by the next round of quarterly earnings reports.”Traders will also focus on the US jobs report at the end of a holiday-shortened week. The data will offer fresh clues on the path for interest rates after comments Wednesday by Federal Reserve Chair Kevin Warsh dampened speculation of a hike this year.Bloomberg Economics expects payrolls to rise at a robust pace, exceeding even May’s strong gain. Hiring likely was especially strong in leisure and hospitality — boosted by the World Cup — while government employment should post its fastest increase of the year.Brent fell 0.7% to $71 a barrel as flows through the Strait of Hormuz climbed. The yen strengthened sharply against the dollar amid rising speculation that the currency’s continued weakness may prompt a fresh round of intervention by Japan.Corporate News:Google lost its long-running fight against a €4.1 billion ($4.7 billion) European Union antitrust fine after the bloc’s top judges said regulators were right to punish the US giant for abusing Android’s market power. OpenAI has begun preliminary discussions about giving the US government a 5% stake in the ChatGPT-developer, the Financial Times reported, citing two people familiar with the talks. Apple Inc. is in negotiations to purchase chips from two Chinese semiconductor makers on a Pentagon blacklist to help reduce the impact of a global memory shortage that’s forced the company to raise prices across its product line. UBS Group AG already has enough capital to meet proposed new requirements in the reform pushed by the Swiss government, according to the Swiss National Bank. Some of the main moves in markets:StocksThe Stoxx Europe 600 rose 0.5% as of 9:45 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures fell 0.4% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index fell 1.4% The MSCI Emerging Markets Index fell 2.1% CurrenciesThe Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.4% to $1.1417 The Japanese yen rose 0.8% to 161.24 per dollar The offshore yuan was little changed at 6.7905 per dollar The British pound rose 0.6% to $1.3354 CryptocurrenciesBitcoin rose 0.5% to $60,354.32 Ether rose 0.3% to $1,621.35 BondsThe yield on 10-year Treasuries advanced one basis point to 4.49% Germany’s 10-year yield advanced four basis points to 2.91% Britain’s 10-year yield advanced four basis points to 4.79% CommoditiesBrent crude fell 0.8% to $70.98 a barrel Spot gold rose 1.1% to $4,076.18 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Subrat Patnaik, James Hirai and Sagarika Jaisinghani.©2026 Bloomberg L.P.
