Core Viewpoint - The ongoing sell-off in technology stocks has led to significant declines in the Japanese and South Korean stock markets, with major indices experiencing sharp drops due to concerns over high valuations and a strengthening dollar [1][2][4]. Group 1: Market Performance - The Nikkei 225 index in Japan fell over 1300 points, a decline exceeding 2%, while the KOSPI index in South Korea dropped over 4% [1][2]. - Major technology stocks such as SoftBank Group, Samsung Electronics, and SK Hynix saw significant declines, with SoftBank's stock plummeting over 10% [1][4]. - The KOSPI 200 index futures experienced a drop of more than 5%, triggering a trading halt mechanism in South Korea [1]. Group 2: Investor Sentiment - Analysts suggest that after a period of rapid gains, investors are increasingly concerned about the overvaluation of AI and semiconductor stocks, leading to profit-taking [1][4]. - The Nasdaq Composite in the U.S. also saw a significant drop of over 2%, reflecting a broader trend in technology stocks [4]. - High-profile investors, including Michael Burry, have expressed bearish sentiments, further heightening market anxiety [4]. Group 3: Currency Impact - The strengthening U.S. dollar has added pressure on high-valuation technology stocks, with the dollar index surpassing the 100 mark for the first time since August [1][5]. - The rise in the dollar is attributed to internal divisions within the Federal Reserve regarding interest rate cuts, which has led traders to adjust their expectations [7][8]. - The British pound has weakened significantly, contributing to the dollar's strength, as the UK faces economic challenges [7][10].

Market Overview - US stock indices collectively declined due to investor concerns over potential hawkish comments from Federal Reserve Chairman Jerome Powell, which could lead to market volatility [1] - The probability of a rate cut in September is around 80%, but this expectation is facing challenges as investors reassess risks and choose to take profits [1] - Data from LSEG indicates that traders' bets on a 25 basis point rate cut have dropped from 99.9% to 79% [1] - The S&P 500 index saw declines across 9 of its 11 sectors, with consumer staples leading the drop at 1.18% [3] Company Performance - Walmart's stock fell 4.5% after reporting Q2 revenue of $177.4 billion, exceeding analyst expectations of $176.16 billion, but adjusted EPS of $0.68 fell short of the expected $0.74, marking the first miss in three years [4] - Major tech stocks continued to decline, with Tesla down 1.17%, Meta down 1.15%, and Amazon down 0.83% [4] - Coty experienced a significant drop of 21.4% due to anticipated sales declines attributed to weak demand in the US market [5] Sector Dynamics - Recent data showed a rebound in US business activity for August and an unexpected month-over-month increase in July home sales, contributing to rising US Treasury yields and further pressure on the stock market [2] - The technology sector has faced a sell-off, raising concerns over inflated valuations since April and increasing regulatory scrutiny from the US government [2] Notable Developments - Apple raised the monthly subscription price for Apple TV+ by 30% to $13 as part of its strategy to expand service revenue, with the annual plan remaining at $99 [9] - Anthropic is in talks to raise up to $10 billion in new funding, which would be one of the largest funding rounds for an AI startup to date, with strong investor demand driving the increase from an initial target of $5 billion [8]