Global equities retreated from record highs Friday as investors braced for crucial U.S. inflation data and assessed renewed technology sector weakness.
The MSCI All-Country index slipped 0.2%, while Europe’s STOXX 600 traded flat. U.S. futures steadied after the Nasdaq’s sharp 2% drop Thursday.
Selling pressure extended to Asia, with Japan’s Nikkei falling 1.2%. Concerns over AI-driven disruption also hit U.S. transportation stocks.
Investors rotated toward defensive assets, refocusing on macroeconomic signals ahead of the consumer inflation report later in the day.
Strategists said speculative segments—including meme stocks, crypto and unprofitable tech—have borne the brunt of the recent correction.
Major tech names faced pressure on capital spending concerns. Apple dropped 5%, as investors reassessed valuations amid rising AI uncertainty.
In fixed income, the 10-year U.S. Treasury yield rose to 4.12%. Markets now price a 70% chance of a June rate cut.
Economists expect core inflation to rise 0.3% monthly, easing the annual rate to 2.5%. A softer print could revive risk appetite and cyclical trades.
