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Asia Braces for Tech Sell-off Amid US Market Shifts
3 Jul
Summary
- Asia-Pacific markets anticipated further losses on Friday.
- US tech stocks weakened, dragging Nasdaq lower overnight.
- Dow Jones hit a record high on hopes for Fed rate cuts.
Asia-Pacific markets were expected to extend their losses on Friday, continuing a trend of investors rotating out of technology stocks. This downturn follows significant weakness observed in U.S. semiconductor shares overnight.
In the United States, markets closed mixed on Thursday. The Dow Jones Industrial Average reached a new record high, gaining 1.14% to close at 52,900.07. This surge was attributed to hopes for interest rate cuts from the Federal Reserve, stimulated by a weaker-than-expected June jobs report.
Conversely, the Nasdaq experienced a notable decline of 0.8%, primarily due to a significant sell-off in semiconductor stocks. The VanEck Semiconductor ETF dropped 4.5%, with individual companies like Teradyne and KLA seeing substantial drops. U.S. markets were closed on Friday, July 3, 2026, for the Independence Day holiday.
Japan's Nikkei 225 futures indicated a lower open, while futures for Australia's S&P/ASX 200 and Hong Kong's Hang Seng index pointed to a slightly higher open.
