The global macro picture is shifting. Asian markets faced headwinds overnight, largely driven by a tech-led selloff. South Korean equities extended their decline as investors continued to retreat from technology stocks. AMD shares fell -3.84% and Intel dipped -0.74% after the companies notified Chinese customers of lengthy waits for CPUs, fueling concerns over supply chain disruptions. Meanwhile, Indonesian shares tumbled after Moody's lowered the country's credit rating outlook.
European markets opened mixed, digesting Toyota's increased full-year operating profit outlook, driven by a weak yen and cost reduction efforts. This positive news was somewhat offset by lingering concerns about global growth and the impact of higher interest rates on corporate earnings. Investors are closely watching economic data releases for further clues about the health of the global economy.
In the US, major indices also felt the pressure. The SPY declined -1.25%, while the QQQ fell -1.44%. The DIA also saw negative movement, down -1.18% while the IWM decreased -1.80%. These moves reflected a broader risk-off sentiment impacting markets globally.
Macro regimes don't change overnight—but when they do, it matters.