STOCKS | Tech Stocks Sell Off on Weak Earnings as Emerging-Market Equities Decline

Results from technology giants including Amazon and Intel fell short of expectations, weighing on risk appetite and emerging-market stocks. According to Sina Finance, the MSCI Emerging Markets Index fell 1.3% on Friday after dropping more than 2% intraday, amid concerns about hefty AI capital spending and disappointing corporate earnings. Asian equities came under particular pressure, with markets weighted toward technology stocks leading declines. South Korea’s KOSPI fell as much as 5.7% and was poised for its largest one-day drop in two weeks. Citi strategists including Luis Costa wrote that emerging markets continue to face competing macroeconomic factors, with oil prices, AI market sentiment and the El Niño cycle likely to drive market direction. The emerging-market currency index fell 0.3%, extending its decline to a third day. The technology sell-off also boosted demand for safe-haven assets such as U.S. Treasuries. Invesco investment director William Yuen said recent volatility in AI stocks had probably absorbed some elevated long positions. He said the current pullback was a short-term correction and that the long-term AI growth trend remained unchanged.