The Tech beatdown continued overnight as tech-heavy Asian indices sold off sharply. Ahead of tomorrow’s Fed meeting, S&P futures steadily improved throughout the morning but the index opened down modestly, just below the 7400 level that has served as near-term support. We then rallied off those early lows, improving throughout the day and are now near best levels, up ~0.5%. Tech rallied off its own lows, though the DRAM ETF (-8%) and ICE Semis index (-4%) are still seeing sharp losses. The hyperscalers/mega caps are keeping losses contained however. Software meanwhile continues to diverge positively from the AI/hardware selloff (IGV +2%). Small caps are underperforming but the Russell is still modestly higher. Thematic/higher risk groups are under pressure: neoclouds and HPC providers down 5-10%, quantum and space-linked stocks similarly. Once again the disparity between tech and everything else in on display as 8/11 sectors are higher. Consumer Staples, Healthcare, Materials and Comm Services are leading.

Global markets were mixed overnight with tech-heavy indices in Asia under significant pressure. South Korea’s Kospi ended the session down >10% triggering its 8th market wide circuit breaker this year. Major European indices were mostly higher. Consumer brands are trading well across staples and luxury, riding tailwinds from Unilever (+9%) and LVHM earnings.

ICE Brent was trading lower and took a leg down around noon, currently down 5% and bit off it lows. That takes the WTD move to -14% after falling through its 100d ma ($87.75) overnight, then its 50d ma ~$85. Yields, which are down ~5bp across the curve and about 8bp this week heading into the Fed rate decision. Market expectations for a hike have eased from ~35% yesterday to ~30% currently. The USD index is pulling back with the decline in yields.