Federal Reserve's tighter policy drags US tech stocks lower

The Federal Reserve, under its new president Kevin Warsh, signaled a more aggressive interest‑rate path, raising expectations for up to 50 basis points of hikes by the end of the year and eliminating forward guidance. The policy shift also included plans to trim the Fed’s balance sheet by about $6.5 trillion. Markets reacted sharply: the Nasdaq fell about 3.3%, large‑cap US stocks slipped roughly 2%, and the technology‑heavy S&P 500 index dropped 1.44%. AI‑related equities, including SpaceX‑linked firms, were hit hard, while the South Korean Kospi plunged 10% as its tech giants fell. European markets also closed lower, with modest declines in London, Paris and Frankfurt exchanges.