Asian shares drop after Wall Street retreats thanks to sinking tech stocks

On February 4, 2026, Asian shares experienced a significant decline following a retreat in Wall Street driven by sinking technology stocks. The drop was particularly pronounced in South Korea, where the Kospi index fell nearly 4%, while U.S. futures also edged lower. This downturn was part of a broader trend of investor jitters over high tech stock valuations, which has been affecting markets globally. The price of bitcoin also saw a sharp decline, falling as much as 8% to its lowest level since November 2024, adding to the overall market volatility. The sell-off in tech stocks was led by companies like Advanced Micro Devices, which dropped 17.3% despite reporting stronger-than-expected profits and revenue forecasts. This indicates that investors are becoming increasingly cautious about the valuations of tech stocks, even when they deliver robust financial performance. The downturn in Asia was mirrored by similar trends in other global markets, with the S&P 500 in the U.S. falling 0.5% for its fifth modest loss in the last six days. The Nasdaq composite, which is heavily weighted towards technology stocks, sank 1.5%, reflecting the broader market sentiment. The decline in tech stocks was not uniform, as some companies like Super Micro Computer saw significant gains, rising 13.8% on the back of strong quarterly results. However, the overall market sentiment remained bearish, with investors expressing concerns about the future prospects of tech companies in the face of rapidly evolving technologies like artificial intelligence. The downturn in tech stocks also had a ripple effect on other sectors, with oil prices sinking more than $1 a barrel and precious metals like gold and silver experiencing volatility. The U.S. dollar strengthened against the Japanese yen and the euro, reflecting the broader market uncertainty and investor flight to safer assets.