As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Global technology shares fell on Friday after Apple raised hardware prices to offset soaring memory and storage costs. The news brought the less attractive side of the AI investment boom into focus: strong chip demand is supporting suppliers, but it is also raising costs for customers. Oil and Treasury yields moved lower, yet neither was enough to prevent another sharp equity selloff.
In Asian Equity Markets stocks fell heavily as the semiconductor reversal resumed. MSCI’s broadest index of Asia-Pacific shares outside Japan declined around 3 percent, while South Korea’s KOSPI fell as much as 9 percent and triggered another circuit breaker. Apple’s price increases added to existing concern around crowded positioning, leveraged exposure and the returns available from record AI infrastructure spending. Thursday’s Micron-led rebound therefore lasted less than one full session across several of the region’s largest chip markets.
In European Equity Markets stocks retreated from Thursday’s record close as technology weakness spread through the region. The pan-European STOXX 600 fell close to 1 percent, with the technology sector down almost 2 percent. Apple’s decision showed that chip scarcity is no longer confined to supplier earnings and order books. It is reaching device prices and customer margins. Retail shares also weakened, while month-end and quarter-end portfolio adjustments added to the volatility in companies that had performed strongly during the second quarter.
In U.S. Equity Markets futures pointed lower after Apple dropped more than 6 percent on Thursday. S&P 500, Dow and Nasdaq futures indicated declines of roughly 0.5 to 1.1 percent, with technology again carrying the largest burden. Reports that OpenAI may delay its initial public offering until next year added another reason to reduce exposure. Micron’s earnings confirmed that memory demand is exceptionally strong. Apple’s response showed the cost of that strength for companies buying the chips.
In Commodities Markets oil fell sharply as physical supply through the Gulf continued to improve. Brent declined around 3.2 percent to roughly $72.84 per barrel, while WTI fell around 2.7 percent to approximately $69.95. More stranded tankers exited the Strait of Hormuz and Saudi Aramco resumed loadings at its Ras Tanura terminal after a near four-month pause. Brent was heading for a weekly decline of almost 10 percent despite a cargo vessel being struck near Oman, suggesting that returning supply currently carries more weight than the residual security risk.
In Currency Markets the U.S. dollar eased modestly after Thursday’s inflation data reduced the urgency around near-term Federal Reserve tightening. The dollar index slipped toward 101.2 but remained close to its strongest level since May 2025. The yen traded near 161.6 per dollar, close to its weakest level in roughly 40 years and well beyond the area that previously prompted intervention warnings. Lower oil is helping Japan’s import bill, but wide rate differentials continue to dominate the currency.
In Bond Markets Treasury yields fell as May PCE inflation matched expectations and traders trimmed some rate-hike bets. The U.S. 2-year yield declined to around 4.09 percent, extending its fall for a fourth session, while the 10-year yield eased to roughly 4.38 percent. Headline PCE inflation still reached 4.1 percent year-on-year and core inflation rose 3.4 percent, leaving both well above the Fed’s target. Lower oil should pull headline inflation down over the coming months, although services and technology-related price pressure may prove slower to fade.
The Cross-Asset Read
Friday showed why lower energy prices cannot solve every inflation problem in this market.
Brent is back near $73, tanker traffic is improving and Treasury yields have moved lower. That is a far better macro backdrop than the market faced earlier in June.
Technology still sold off.
Memory-chip demand is strong enough to support record supplier orders and aggressive pricing. Apple’s response shows where those gains reappear elsewhere in the system: higher device prices, pressure on margins and a less comfortable outlook for consumer demand. The AI buildout is creating its own cost cycle even as the energy shock unwinds.
The useful test now sits with the U.S. 2-year yield and the Nasdaq. A 2-year yield holding below 4.10 percent should give growth valuations some relief. If technology shares continue weakening with rates at or below that level and Brent below $75, investors are dealing with an earnings and valuation reset rather than a macro-driven correction.
Oil and bonds are offering support. Technology companies now have to show that the returns from the AI cycle can keep pace with its rising cost.
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