Global equities tumbled on a tech‑led selloff, undermining a year‑to‑date rally that had been concentrated in a handful of chip and AI leaders.
South Korea, one of this year’s standout markets, plunged as much as 12% as investors worried about frothy valuations; three semiconductor giants now account for roughly 55% of the Kospi index. Taiwan showed similar concentration risk, with TSMC representing about 42% of its benchmark, amplifying losses across the region. Mainland China and Japan both fell more than 2%, while US futures pointed to a weaker open after the Nasdaq corrected almost 3%.
Markets’ weakness contrasted with signs of macro resilience in Europe. Ireland said a deal on the EU’s long‑mooted capital markets union could be achievable by year‑end, and the Digital Euro cleared a key parliamentary hurdle, paving the way for broader rollout plans. Euro‑area business activity proved more resilient than feared in June: the S&P Global composite PMI rose to 49.5 from 48.5 in May, driven largely by a stronger services reading in France. Price pressures eased, suggesting the recent inflation spike may be peaking.
Consumer and industry indicators offered further bright spots. New car sales in Europe increased for a fourth consecutive month, up 3.6% in May on stronger demand for affordable hybrids and electric vehicles. The rout in technology stocks left European equities down about 1% on the day. Oil was flat, with Brent trading near $78 a barrel. Investors will be watching whether the pullback broadens beyond tech and how policymakers respond as the week progresses