Tech stock losses baffle global markets

Financial market indices in Asia and Europe recorded sharp declines pressured by a widespread wave of selling that affected shares of major technology and artificial intelligence companies, influenced by quarterly earnings data below expectations and growing concerns that markets have overvalued advanced tech assets in recent months. The sector's losses were quickly reflected in major stock indices, which erased their weekly gains amid investor fears of a slowdown in the pace of capital expenditure in the tech sector.

These drops coincided with a notable rebound in European natural gas futures prices due to geopolitical tensions and seasonal demand, which rekindled fears about inflationary pressures and pushed investors to anticipate that central banks will keep interest rates high for longer. At the same time, gold prices continued their steep decline, heading toward their largest weekly loss in months as a result of rising bond yields and the surging dollar, amid a broad repositioning toward more stable monetary safe havens.