Global Tech Sell-Off Intensifies: Kospi Plunges Nearly 6%, S&P 500 Futures Mixed Amid AI Infrastructure Cost Concerns

The global tech sell-off deepened Friday as South Korea's Kospi index plunged nearly 6%, while S&P 500 futures showed mixed performance. Mounting concerns over the rising costs of artificial intelligence infrastructure are driving investors away from technology stocks.

S&P 500 futures were mixed early Friday, while European and Asia-Pacific markets tumbled, as a global sell-off in technology stocks gathered pace amid mounting concerns over the rising cost of artificial intelligence infrastructure.

S&P 500 futures were down 0.16%, while Nasdaq 100 futures lost 0.66%. Dow Jones Industrial Average futures rose by 92 points, or about 0.18%.

Investors continued to move out of tech names on Thursday, causing the Nasdaq Composite to pull back 0.46% and notch its first four-day losing streak since February. The S&P 500 slipped 0.01%. On the other hand, a rotation into healthcare, financial and industrial names boosted the blue-chip Dow 71.72 points, or 0.14%, higher.

The sell-off was particularly severe in Asia. SoftBank Group, which plunged more than 12%, led losses across the region.

It comes after the Nasdaq Composite fell for a fourth straight session overnight. The tech-heavy index dropped 0.46% as a 6% plunge in Apple overshadowed Micron's stronger-than-expected earnings.

The Japanese conglomerate could remain under pressure after its chip designer Arm Holdings fell 3.2% overnight, underperforming the broader semiconductor sector even as AI-related stocks rebounded sharply.

Andrew Jackson, an equity strategist at Ortus Advisors, said investor enthusiasm for SoftBank may also be capped by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.

South Korean equities finished sharply lower, with the Kospi declining 5.81% to 8,411.21 and the Kosdaq shedding 4.10% to 851.37, as the broad-based technology selloff swept across the region.

Japan's Nikkei 225 fell 4.15% to 69,360.88, while the broader Topix lost 1.32% to 3,963.36. Australia's S&P/ASX 200 bucked the regional downturn to edge up 0.18%, closing at 8,764.20. Hong Kong's Hang Seng index closed 1.76% lower, while the mainland's CSI 300 lost 3% to close at 4,869.64.

European stocks also opened in negative territory on Friday, as a global-sell off in technology stocks sent major bourses into the red.

The pan-European Stoxx 600 opened down 0.4%, with London's FTSE 100 shedding 0.3% and Germany's DAX losing 0.6%. France's Cac 40 opened 0.16% lower.

In Thursday's regular session, Apple lost 6% after announcing price hikes on its iPads and MacBooks, pointing to rising demand for memory and storage. Microsoft dropped more than 3% after announcing higher prices on its Xbox gaming consoles, citing surging component costs. Fellow tech giants Alphabet and Meta Platforms also closed the session lower.

"This is a market that we think is quite set up to test conviction. We have this flavor of market leadership in specifically semiconductors and memory chip leaders," said Julia Hermann, global market strategist New York Life Investment Management, on CNBC's "Closing Bell" on Thursday afternoon. "This is a structurally more volatile flavor of tech than we saw in the Magnificent Seven for the past several years."

Hermann added: "Then you pair that with an astonishing repricing in Fed expectations — not just the what, but the why of why the Fed might be hiking next — and you have this environment, which is candidly a recipe for volatility."

Thursday's losses compounded the Nasdaq Composite's existing week-to-date declines. The index is currently on pace to end 4.4% lower, followed by the S&P 500, which is down 1.9% on the week. The Dow, on the other hand, is bucking the trend with a week-to-date gain of 0.7%.

On Friday morning, traders will watch out for May's preliminary wholesale inventories and June's final University of Michigan sentiment reading.

Zalando shares fall after German financial regulator probe

Shares in online retailer Zalando fell 8% early Friday after BaFin, the German financial regulator, announced it was probing the firm's financial statements for possible accounting violations.

The regulator said critical information regarding the firm's acquisition of peer About You may have been intentionally omitted from its financial statements.

Zalando told CNBC in a statement that the firm is "in close and constructive dialogue with BaFin" regarding this matter, and described it as a "purely formal and materially insignificant aspect" of the notes.

Zalando shares were last seen trading down 8.2%.

European stocks open lower as tech sell-off spreads

European stocks opened in negative territory on Friday, as a global-sell off in technology stocks sent major bourses into the red.

The pan-European Stoxx 600 opened down 0.4%, with London's FTSE 100 shedding 0.3% and Germany's DAX losing 0.6%. France's Cac 40 opened 0.16% lower.

The global tech sell-off spread to European stocks in early trade, with the Stoxx 600 technology index leading losses, last seen 1.2% lower.

South Korea leads Asia tech rout as Kospi tumbles nearly 6%

South Korean equities finished sharply lower, with the Kospi declining 5.81% to 8,411.21 and the Kosdaq shedding 4.10% to 851.37, as a broad-based technology selloff swept across Asian market.

Elsewhere, Japan's Nikkei 225 fell 4.15% to 69,360.88, while the broader Topix lost 1.32% to 3,963.36

Australia's S&P/ASX 200 bucked the regional downturn to edge up 0.18%, closing at 8,764.20.

Airwallex hits $11 billion valuation with $320 million raise as fintech pushes into finance run by AI agents

Airwallex has raised $320 million in a Series H funding round, valuing the global payments company at $11 billion, a 38% leap from just six months ago, as the fintech firm doubles down on artificial intelligence-powered financial software.

The latest funding round was led by New York venture capital firm Addition, with investment from funds including Baillie Gifford, Hummingbird, QED Investors, T. Rowe Price, Washington University in St. Louis and Amex Ventures.

Airwallex also reported its annualized revenue surged 74% from a year ago to $1.3 billion in March, while annualized transaction volume more than doubled from a year earlier. More than 90% of its revenue came from customers using more than one Airwallex product, the company said.

Read the full story here.

Oil slides 2% as markets focus on supply outlook amid fresh Iran tensions

Oil extended declines on Friday as investors monitored developments in the Middle East conflict while assessing whether recent diplomatic efforts would reduce the risk of supply chain disruptions.

International benchmark Brent crude futures for August slipped 2.05% to $73.72 a barrel. U.S. West Texas Intermediate futures for August declined 2.03% to $70.48 according to per barrel.

Scott Nations, president of Nations Indexes, said on CNBC's "Squawk Box Asia" that "there is so much still that is to be questioned about the actual agreement."

"I think we're being too optimistic, because nothing really has been resolved, and Iran knows that they have the world economy where they want it if they want to shut down the strait," Nations added.

Japan's Nikkei 225 briefly falls below 69,000 yen, dragged by tech stocks

Japan's Nikkei 225 extended losses, dropping as much as 5.15% and briefly falling below the 69,000 level, weighed by tech stocks in a broad sell-off as concerns over the rising costs of artificial intelligence infrastructure mount.

Tech giant SoftBank Group plunged more than 13% on Friday. Advantest declined more than 10%, while Tokyo Electron was down more than 3%.

Over in South Korea, index heavyweights Samsung and SK Hynix dropped more than 7% and 9%, respectively. The South Korean exchange has triggered circuit breakers for its main index Kospi, with trading halted for approximately 20 minutes.

Gold, silver slide as stronger dollar dents demand for precious metals

Spot gold and silver prices fell on Friday as a stronger U.S. dollar and expectations that the Federal Reserve will keep interest rates higher for longer weighed on precious metals.

Gold is heading for a fourth straight weekly decline, with spot gold falling 0.87% to $3,996.79 an ounce, while silver tumbled 3.62% to $55.77.

Investors were also monitoring the fragile ceasefire between the U.S. and Iran, which has eased some demand for safe-haven assets.

South Korean exchange triggers circuit breakers for Kospi index

The South Korean exchange has triggered circuit breakers for its main index Kospi, with trading halted for approximately 20 minutes.

The move comes after the index fell over 8%, while the small-cap Kosdaq lost more than 5%.

Index heavyweights Samsung and SK Hynix, which dropped over 8% and 9% respectively, were dragged by a broad selloff in Asian technology stocks amid growing concerns over rising costs of artificial intelligence infrastructure.

Elsewhere in Japan, tech giant SoftBank Group also plunged more than 12% on Friday. Advantest declined over 9%, while Tokyo Electron was down more than 3%.

Oil falls despite fresh Middle East tensions and renewed cracks within OPEC

Oil declined on Friday as investors digested a flurry of news from the Middle East and kept an eye out for any further breakthroughs in the conflict with Iran.

International benchmark Brent crude futures for August slipped 0.56% to $74.84 a barrel. U.S. West Texas Intermediate futures for August declined 0.49% to $71.57 per barrel.

A U.S. official told MS NOW that Iran was behind an attack on a cargo ship near the coast of Oman in the Strait of Hormuz. The ship was sailing under a Singapore flag, the Wall Street Journal said. According to United Kingdom Maritime Trade Operations, the ship reported no casualties and no environmental impact.

Tensions in the Middle East also rose a notch, with Iran and the U.S. disagreeing over the use of funds listed in the Memorandum of Understanding signed between the two countries.

The speaker of Iran's parliament earlier on Thursday rejected claims by the Trump administration that the Islamic Republic's unfrozen assets will be used to buy U.S. agricultural products.

U.S. officials, however, maintained that any released funds would remain subject to American approval.

"As Vice President JD Vance announced this week, if Iranian assets are released, they will be used to purchase American agricultural products to feed the Iranian people," according to a U.S. official

Meanwhile, OPEC now faces the possibility of another exit by its second-largest producer. Iraq reportedly wants a higher output quota from the cartel and told the group it could leave if demands are not met.

SoftBank sinks 11% as Asia tech rout tracks declines in the U.S.

SoftBank Group plunged more than 11% on Friday, leading a broad selloff in Asian technology stocks, amid mounting concerns over the rising cost of artificial intelligence infrastructure.

The Japanese conglomerate led losses across the region after the Nasdaq Composite fell for a fourth straight session overnight. The tech-heavy index dropped 0.46% as a 6% plunge in Apple overshadowed Micron's stronger-than-expected earnings.

SoftBank Group could remain under pressure after its chip designer Arm Holdings fell 3.2% overnight, underperforming the broader semiconductor sector even as AI-related stocks rebounded sharply, said analysts.

Andrew Jackson, an equity strategist at Ortus Advisors, said investor enthusiasm for SoftBank may also be capped by reports that OpenAI could delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.

Qualcomm's new AI data center chip deal with Meta is ultimately positive for Arm through royalty payments, Jackson said. However, Arm also faces growing competition as Qualcomm expands more aggressively into the central processing unit market.

Read the full story here.

Asia-Pacific markets traded broadly lower early Friday; Kospi falls 1%

Asia-Pacific markets traded broadly lower early Friday. South Korea's Kospi led declines of 1.44%, while the small-cap Kosdaq lost over 1%.

Japan's Nikkei 225 declined 0.88% while the Topix was flat.

Australia's benchmark S&P/ASX 200 was up 0.17%.

Asia markets mixed as investors weigh Wall Street's tech rotation

Asia-Pacific markets were set to trade mixed on Friday, tracking a divided session on Wall Street as investors rotated out of major technology stocks despite a strong earnings report from Micron Technology.

Japan's Nikkei 225 was poised to fall, with the Chicago futures contract at 71,710 and its Osaka counterpart last trading at 71,250 compared with the index's previous close of 72,366.34.

Hong Kong Hang Seng index futures were at 23,005, lower than the index's last close of 23,076.91.

In Australia, futures traded at 8,755, slightly higher than the S&P/ASX 200's previous close of  8,748.70.

The Nasdaq Composite declined on Thursday despite strong earnings from Micron Technology, as investors rotated out of major tech names. The broader market was mixed, with gains in non-AI stocks lifting the Dow Jones Industrial Average to a fresh intraday record.

Where the major averages stand

Here's where the major averages stand for the week ahead of Friday's trading:

• The S&P 500 is down 1.91%
• The Nasdaq Composite is down 4.37%
• The Dow Jones Industrial Average is up 0.69%
• The Russell 2000 is up 0.94%

Six of the 11 GICS sectors rise on Thursday

Six of the 11 GICS sectors rose to end Thursday's trading session.

Gains were led by industrials stocks, up 2.19%. The second- and third-best sector performers were healthcare and materials stocks, which gained 1.49% and 1.39%, respectively.

On the other hand, the consumer discretionary sector was the day's laggard and dropped 1.78%. This was followed by the consumer staples and communication services sectors, which respectively fell 1.08% and 1.02%.

Dow futures open higher

Dow futures ticked higher by 106 points, or 0.2%, on Thursday evening.

S&P 500 futures rose 0.1%, while Nasdaq 100 futures opened marginally higher.