Global tech shares gyrate after earnings disappoint, yen tumbles

Global tech stocks continued a wild ride on Friday, while the dollar soared against the yen after a report that the Bank of Japan is leaning towards maintaining ultra-dovish monetary policy at its meeting next week.

Futures contracts for the Nasdaq 100 indicated Wall Street’s multi-trillion dollar tech index would open about 0.6% higher, a day after it fell 2.3% in its worst trading session since February.

The benchmark S&P 500 index was heading for a 0.2% gain at the open.

Following steep post-earnings plunges in Tesla and Netflix earlier in the week, chipmaker TSMC on Friday warned of a drop in 2023 sales. A sub-index of European technology shares lost 1% on Friday.

The MSCI World index of global shares dipped 0.3%, while Europe’s Stoxx 600 share index was flat.

The Nasdaq 100 remains 41% higher year to date, prompting profit-taking amid concerns about tech stock valuations, which have been supported by exuberance about the potential of artificial intelligence.

“The market got very over-bought,” said Patrick Spencer, vice chair of equities at Baird. “If you haven’t played this market, you’ve missed out.”

This report’s information was first seen on ZAWYA; to read more, click this link.