Global stocks fell on Tuesday, dragged lower by a broad sell-off in technology and semiconductor shares as profit-taking set in and investors braced for more aggressive Federal Reserve action on inflation.
Dublin
Euronext Dublin finished the day down 1.1 per cent after a number of the index’s main players suffered losses.
Cavan-based insulation specialist Kingspan was the standout underperformer, losing 3.5 per cent.
The index was also weighed down by the financials with AIB and Bank of Ireland down 1.2 per cent and 2.1 per cent respectively.
RM Block
On the upside, builder Cairn Homes climbed 1.9 per cent, while its peer Glenveagh Properties rose 0.4 per cent.
London
The FTSE 100 closed down 0.1 per cent, held back by weak miners. The FTSE 250 ended down 1.2 per cent, while the Aim All-Share fell 1.5 per cent.
After a weak start to proceedings, London’s blue chips made headway to briefly trade in the green in the afternoon, before fading into the close.
The modest falls came as figures showed that private sector activity contracted in the UK for a second consecutive month in June.
Europe
Europe’s benchmark Stoxx 600 closed lower as expectations for imminent interest rate hikes by the Federal Reserve and concerns around increased corporate spending on AI dented sentiment.
The pan-European index closed 0.7 per cent lower, after paring some of its earlier gains. It had hit its lowest level since June 12th, with most sectors trading in negative territory.
The tech sector was the biggest weight on the Stoxx 600 with a 3.7 per cent fall, logging its biggest daily drop since February as investors globally reassessed companies that rallied earlier this quarter on AI enthusiasm.
Chipmakers Infineon and STMicroelectronics declined 6.3 per cent and 8.5 per cent, respectively, while semiconductor equipment makers ASML and Aixtron slipped 5.7 per cent and 8.3 per cent respectively.
European tech stocks have been the biggest gainers among major sectors this quarter. However, as borrowing costs tick higher, companies banking on debt-backed spending are likely to come under pressure.
In equity markets, the Cac 40 in Paris ended down 0.7 per cent, while the Dax 40 in Frankfurt fell 1 per cent.
New York
The Nasdaq and the S&P 500 fell to over one-week lows, dragged down by sharp losses in semiconductor stocks as investors braced for a more hawkish Federal Reserve and scrutinised growing debt-funded AI spending.
If losses hold, the Nasdaq 100 would lose more than $1 trillion in market value. Nvidia fell 3.7 per cent, Alphabet lost 1 per cent, while chipmakers Intel, Marvell Technology and Advanced Micro Devices fell between 3.8 per cent and 9 per cent.
Memory chipmakers Micron Technology and SanDisk, among the best performers on the S&P 500 this year, fell 11 per cent and 12.6 per cent, respectively.
Six of 11 major S&P 500 sectors moved higher, with consumer staples rising the most at 1.9 per cent. With highly priced tech shares coming under pressure recently, investors have shifted focus to other areas of the market.
Shares of Elon Musk’s SpaceX were last up 2.1 per cent, reversing early losses. More than $600 billion was wiped off the company’s market value over the past three sessions. SpaceX, which debuted earlier this month, joined a list of megacaps to tap the bond market to raise capital.
Traders are increasingly betting on a second interest rate hike by the US Fed by December, according to LSEG data, compared to expectations of just one 25-basis-point hike two weeks ago, as investors price in hawkish monetary policy under new chair Kevin Warsh.
Investors are keeping a close eye on developments in the Middle East after the US waived sanctions on Iran for 60 days after the first round of talks under a nascent peace deal. – Additional reporting: Agencies
