The June 2026 tech sell-off explained: the two mechanisms behind the correction

The pullback in technology markets since mid-June 2026 is no accident: it is the result of two structural forces that reinforce each other and are reshaping the sectoral geography of portfolios.

The Fact

The Nasdaq-100 is consolidating in the 19,200-19,500 pts range after losing ~8% in a few sessions since June 23, 2026. The shockwave reached Asia: the KOSPI dropped by 8.3% (circuit breaker triggered) following Apple's price increases on MacBook and iPad, penalizing Samsung and SK Hynix. Gold falls for the 4th consecutive week (below $4,000). The dollar hits a 13-month high. The US 10-year stabilizes around 4.70%.

Our Analysis

Two mechanisms explain the correction: (1) "Perfection pricing" – tech valuations incorporated a flawless AI earnings growth scenario, now challenged by tariffs and early signs of demand slowdown; (2) High long-term rates – at 4.70%, the US 10-year mechanically compresses multiples on long-duration assets (growth/tech). The sector rotation toward value (energy, defense, finance) is taking hold durably. Kevin Warsh (Fed) seeks to reassure without pivoting, maintaining pressure on multiples.

To Watch

Release of core PCE (next Fed data point); Big Tech earnings July/August; USD/JPY – MoF intervention threshold at 158-160; Nasdaq-100 support at 19,000 pts.