This content was published on
July 3, 2026 - 01:26
5 minutes
(Bloomberg) — Stocks in Asia were set to decline for a second session as investors continued to rotate out of technology shares on concerns that the artificial intelligence-fueled rally has run ahead of itself.Equity-index futures for Japan, South Korea and Taiwan all declined, while contracts showed a tepid open for Hong Kong. Earlier, the tech-heavy Nasdaq 100 Index fell 1.6%, while the Philadelphia Semiconductor Index tumbled 5.4%, extending its losses over the past two weeks to 12%.Elsewhere, Treasuries ended the holiday-shortened week with lower short-term yields after June employment data and lower oil prices challenged expectations for Federal Reserve rate hikes this year. There will be no cash trading in Treasuries on Friday due to a US holiday. The dollar fell in New York trading.The moves in tech followed a report that Anthropic PBC is in talks with Samsung Electronics Co. to manufacture a custom AI chip, adding to signs that competition across the supply chain is intensifying. While confidence in the technology’s long-term potential remains strong, investors are increasingly questioning whether sky-high valuations can keep pace with rising spending and a more crowded market.“There are concerns that the high memory prices will bring AI solutions that need less memory, and that the data center build-out may not all get built in the end,” said Louis Navellier of Navellier & Associates. “And that token pricing of AI software will push users to lower-cost versions, especially Chinese offerings, and is bringing increased caution regarding the enthusiasm for all things AI.”In other corners of the market, American crude slipped early Friday as tanker traffic through the Strait of Hormuz increased further, adding to a gush of near-term supply while talks between the US and Iran continue. The commodity traded just under $68.50 a barrel.Gold held its gains from the New York session as the weak US jobs numbers eased rate-hike bets. The non-yielding metal, which is less attractive when rates are increased, traded around $4,125 an ounce.The dollar held its losses, while the yen gave up some of its gains from the previous session to trade near 161.30 to the greenback.Earlier, the S&P 500 and Nasdaq 100 received a boost after data showed the labor market cooled in June, reinforcing expectations the Fed can afford to be patient on interest rates.Nonfarm payrolls increased 57,000 last month after downward revisions to the prior two months took some of the shine off recent blockbuster reports, Bureau of Labor Statistics data Thursday showed. The unemployment rate fell to 4.2% as labor force participation plunged.Treasury yields and the dollar fell after the report, while traders pared back expectations for additional Fed rate hikes, though they continued to price in at least one increase this year.“A labor market that is still expanding, but no longer overheating, allows the Fed to remain patient while assessing price pressures,” said Andrew Dubinsky at UBS Chief Investment Office. “If disinflation continues as expected, policymakers will have little reason to move away from a holding pattern in the second half of the year.”Corporate Highlights:Tesla Inc.’s vehicle sales beat Wall Street’s modest expectations by a wide margin. SoftBank Group Corp. and its telecom unit will start renting AI computing resources to US companies next fiscal year. Rivian Automotive Inc. raised its full-year sales outlook in a promising sign as the maker of electric vehicles begins deliveries of its lower-cost SUV seen as critical to the company’s future. Adani Enterprises Ltd. is seeking to raise as much as 100 billion rupees ($1 billion) through a sale of shares to institutional investors, terms showed. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:21 a.m. Tokyo time Hang Seng futures were little changed S&P/ASX 200 futures rose 0.6% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1429 The Japanese yen was little changed at 161.25 per dollar The offshore yuan was little changed at 6.7889 per dollar The Australian dollar was little changed at $0.6918 CryptocurrenciesBitcoin fell 0.3% to $61,355.11 Ether fell 0.5% to $1,695.41 BondsAustralia’s 10-year yield was little changed at 4.82% CommoditiesWest Texas Intermediate crude fell 0.4% to $68.43 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
