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GLOBAL MARKETS-U.S. tech derails global stock market rally – Wire News

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Global Stock Market Rally Derailed by U.S. Tech

The global stock market rally was derailed by U.S. tech stocks as they struggled to maintain momentum, causing a sharp sell-off in U.S. equities. The trading sessions in Asia and Europe had initially ended on a positive note as trade fears eased, but the faltering technology shares in the U.S. reversed the trend. This shift came just a day after the best performance of U.S. equities since August 2015. Tech stocks tumbled due to concerns about regulation of social media platforms, leading to a 0.55 percent drop in MSCI’s gauge of global stocks.

Market Skepticism Rises Amid Trade Conflict Concerns

The skepticism in the market has increased due to the lack of earnings data and concerns about trade conflicts undermining growth. The S&P 500 has declined by 2.3 percent this year, with investors worried about the potential impact of trade disputes on economic growth and inflation. Technology stocks, which were once leading the market, experienced the biggest losses, with Facebook Inc. leading the decline amidst a data scandal. The Dow Jones Industrial Average fell by 1.43 percent, the S&P 500 lost 1.73 percent, and the Nasdaq Composite dropped by 2.93 percent.

Optimism Spurred by U.S.-China Trade Talks

Reports of behind-the-scenes talks between Washington and Beijing have sparked optimism about a potential resolution to trade tensions. White House officials are pushing China to make concessions on tariffs, foreign ownership, and semiconductor purchases. This news led to gains in the Asian trading session, with Japan’s Nikkei share index posting its best day in almost three months. The European market also saw positive movements, with the FTSEurofirst 300 index rising by 1.2 percent. Despite facing record new supply, safe-haven Treasuries saw strong buying, pushing the 10-year yield to its lowest levels in over six weeks.

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