{"id":63764,"date":"2026-06-25T22:38:19","date_gmt":"2026-06-26T02:38:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-tech-sell-off-deepens-and-fed-hike-fears-weigh-on-currencies\/63764\/"},"modified":"2026-06-25T22:38:19","modified_gmt":"2026-06-26T02:38:19","slug":"global-markets-retreat-as-tech-sell-off-deepens-and-fed-hike-fears-weigh-on-currencies","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-tech-sell-off-deepens-and-fed-hike-fears-weigh-on-currencies\/63764\/","title":{"rendered":"Global Markets Retreat as Tech Sell-Off Deepens and Fed Hike Fears Weigh on Currencies"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. and European futures slide<\/strong>, led by a <strong>0.7% drop in the Nasdaq<\/strong>, as global tech sentiment sours following concerns over AI overspending.<\/li>\n<li><strong>Saudi Aramco (<a href=\"\/stock\/2222.SR\">2222.SR<\/a>) reopens the Ras Tanura oil terminal<\/strong> after a four-month halt, with supertankers already loading crude to restore global supply.<\/li>\n<li><strong>The New Zealand and Australian Dollars weaken<\/strong> significantly as traders ramp up bets for a <strong>Federal Reserve interest rate hike<\/strong> later this year.<\/li>\n<li><strong>China\u2019s DeepSeek plans to double its workforce<\/strong> after securing a massive <strong>$7.4 billion funding round<\/strong>, valuing the AI startup at over <strong>$50 billion<\/strong>.<\/li>\n<li><strong>Asian tech indices face heavy selling<\/strong>, with Taiwan shares falling over <strong>2%<\/strong> and China\u2019s 5G stocks declining more than <strong>4%<\/strong>.<\/li>\n<\/ul>\n<h2>Tech Rout Drags Down Global Markets<\/h2>\n<p>Global equity markets are under pressure this morning as a wave of risk aversion sweeps through the technology sector. <strong>U.S. futures turned lower<\/strong> in early trade, with the <strong>Nasdaq dropping 0.7%<\/strong> and the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> falling 0.2%<\/strong>, reflecting growing investor anxiety over the sustainability of AI-driven valuations.<\/p>\n<p>In Asia, the sell-off was even more pronounced. <strong>Taiwan shares fell over 2%<\/strong>, while <strong>China\u2019s 5G Stocks Index declined over 4%<\/strong> amid broad weakness in the semiconductor and telecommunications sectors. Despite the market gloom, Chinese AI firm <strong>DeepSeek<\/strong> announced plans to <strong>double its workforce<\/strong> to roughly 340 employees, fueled by a fresh <strong>$7.4 billion<\/strong> funding round led by <strong>Tencent<\/strong> and <strong>CATL<\/strong>.<\/p>\n<h2>Currencies Slide on Hawkish Fed Outlook<\/h2>\n<p>The <strong>U.S. Dollar<\/strong> strengthened against major peers as expectations for a <strong>Federal Reserve rate hike<\/strong> intensified. The <strong>New Zealand Dollar (NZD)<\/strong> weakened below the <strong>0.5650<\/strong> level, while the <strong>Australian Dollar (AUD)<\/strong> slid <strong>0.5%<\/strong> to trade at <strong>$0.68761<\/strong>.<\/p>\n<p>Traders are increasingly pricing in a more hawkish stance from the Fed, with some analysts now anticipating a rate increase as early as September. In Japan, <strong>Finance Minister Satsuki Katayama<\/strong> vowed to maintain <strong>fiscal discipline<\/strong> while simultaneously pursuing strategic growth investments, as the government attempts to stabilize the <strong>Yen<\/strong> near 40-year lows.<\/p>\n<h2>Energy Supply Recovers as Ras Tanura Reopens<\/h2>\n<p>In a major development for global energy markets, <strong>Saudi Aramco (<a href=\"\/stock\/2222.SR\">2222.SR<\/a>)<\/strong> has officially reopened oil loading operations at the <strong>Ras Tanura<\/strong> port. The facility, which is one of the world&#39;s largest oil export hubs, had been largely idle since early March due to regional instability and technical disruptions.<\/p>\n<p>Shipping data currently shows <strong>two supertankers (VLCCs)<\/strong> actively loading crude, with a third vessel awaiting its turn. The resumption of operations at Ras Tanura is expected to bring a significant volume of oil back to the global market, potentially easing price pressures that have persisted throughout the second quarter.<\/p>\n<h2>Regional Developments and Regulatory Shifts<\/h2>\n<p>Geopolitical activity remains high in Beijing, where <strong>President Xi Jinping<\/strong> met with <strong>Bangladesh Prime Minister Tarique Rahman<\/strong> to discuss deepening economic ties and the <strong>Belt and Road Initiative<\/strong>. Meanwhile, <strong>Singapore\u2019s<\/strong> latest sovereign bond sale is expected to draw &quot;fair demand&quot; as investors seek safety amid the broader market volatility.<\/p>\n<p>In the healthcare sector, <strong>Hong Kong\u2019s drug regulator<\/strong> is moving forward with a global talent hunt to staff its new <strong>Centre for Medical Products Regulation<\/strong>. The city is seeking <strong>World Health Organization (WHO)<\/strong> recognition for the body, aiming to establish itself as an independent, internationally recognized primary drug evaluator by the end of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. and European futures slide, led by a 0.7% drop in the Nasdaq, as global tech sentiment sours 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