Stock Market Live Updates Today: BSE Sensex, Nifty50 may see negative start as fresh US-Israel-Iran tensions erupt; crude oil prices rise
South Korea’s technology-heavy KOSPI index slumped more than 6.8% in volatile trading, triggering a temporary 20-minute trading halt earlier in the session. The benchmark has now retreated roughly 14% from the record highs reached last week.
Japan’s Nikkei fell 3.4% in early trade. In contrast, US equity futures attempted a modest recovery after Friday’s sharp decline, with S&P 500 and Nasdaq 100 futures edging higher.
The technology-led selloff gathered pace after the Nasdaq dropped 4.2% on Friday. Stronger-than-expected US employment data fuelled expectations of further interest rate increases by the Federal Reserve, prompting investors to reassess positions in high-growth stocks.
Marc Velan, Head of Investments at Lucerne Asset Management in Singapore, said the latest decline appeared to be driven more by profit-taking and positioning adjustments than by doubts over the long-term prospects of artificial intelligence. He noted that South Korean technology stocks had been among the strongest performers globally and were heavily owned by investors, making them a natural source of liquidity when interest-rate expectations shifted.
US Treasury yields also moved higher, with the two-year yield climbing more than 11 basis points on Friday and rising a further 1.6 basis points on Monday to 4.1782%.
Bob Savage, Head of Markets Macro Strategy at BNY, said the market narrative centred around artificial intelligence lost some momentum last week.
According to him, investors are now debating whether the recent pullback represents a healthy pause after a nine-week rally in equities or the beginning of a broader market peak. He added that growing investor focus on upcoming offerings linked to companies such as SpaceX and Anthropic may be contributing to the current pause as markets reassess valuations and make room for new listings.
