Fresh concerns about the outlook for technology giants led to a selloff in US and European equity futures and Asian shares on Friday. Treasuries rallied and the yen strengthened.
Nasdaq 100 contracts fell over 2.5% following a string of reports from the likes of Amazon.com Inc. and Apple Inc., with the iPhone maker down more than 4% in after-hours trading. Shares tumbled across Asia, with stocks in South Korea and Japan faring worst. Benchmark Treasury yields fell back toward 0.8% and the dollar steadied. The yuan pushed higher amid month-end adjustments.
The S&P 500 had earlier bounced back a day after its biggest rout in four months, with investors encouraged by better-than-forecast economic data even as they kept a wary eye on growing coronavirus infections. Crude oil declined.
Weakness in technology shares is adding to volatility that’s likely to remain elevated heading into next week’s US election. Global equities are on course for the worst weekly decline since March as lockdown measures in some countries and the lack of an agreement on US stimulus dent sentiment. New US coronavirus cases topped 89,000, setting a daily record.
“There is going to be more volatility ahead of the election,” Quincy Krosby, chief market strategist at Prudential Financial Inc., said on Bloomberg TV. “Over the weekend folks are going to be focused on Pennsylvania to see whether or not Biden is gaining there. The concern is if he gains a little bit, that may be one where you could actually look to a contested election.”
Here are the main market moves:
- S&P 500 Index futures fell 2.3% and Nasdaq 100 contracts were down 2.5% as of 6:16 a.m. in London. The S&P 500 rose 1.2% on Thursday.
- Japan’s Topix index fell 2%.
- Hong Kong’s Hang Seng slipped 1.9%.
- Shanghai Composite was down 1.2%.
- South Korea’s Kospi lost 2.4%.
- Euro Stoxx 50 futures were 1.8% lower.
- The Bloomberg Dollar Spot Index was little changed after increasing 0.4% Thursday.
- The yen was at 104.19 per dollar, up 0.4%.
- The offshore yuan rose 0.4% to 6.6853 per dollar.
- The euro bought $1.1682, up 0.1%.
- The yield on 10-year Treasuries dipped two basis points to 0.81%.
- West Texas Intermediate crude fell 1.8% to $35.53 a barrel.
- Gold was at $1,870 an ounce, up 0.1%.