Asian Markets and U.S. Futures Fall as Tech Selloff Deepens

U.S. stock futures were lower in early trading, with S&P 500 futures down 0.7%, Nasdaq futures off 1.6% and Dow futures slipping about 0.15%, as investors headed toward what could be another weak trading week. The moves came after Wall Street finished Thursday on a disappointing note, even after Micron reported strong quarterly results. The Nasdaq reversed an early gain and closed down 0.4%, while the Dow Jones rose about 0.1%.

Apple shares fell 6% after the company said it would raise prices on some iPad and laptop models, citing stronger demand for memory and storage components. For the week so far, the Nasdaq is on pace for a 4.4% loss and the S&P 500 is down 1.9%, while the Dow is still up 0.7%.

Markets across Asia-Pacific were mostly in the red on Friday morning. South Korea’s Kospi led regional declines with a 6% drop, Japan’s Nikkei fell 3.2%, and Hong Kong’s Hang Seng lost nearly 2%.

Julia Hermann, global market strategist at New York Life Investment Management, told CNBC that the market appears set to test investor conviction and is being driven by semiconductor and memory-chip leaders. She said this type of technology leadership is structurally more volatile than the “Magnificent Seven” seen in recent years. Combined with pricing for future interest-rate hikes, she said, it creates a “recipe for volatility.”