(Bloomberg) — Asian equity benchmarks were set to trade within tight ranges following a mixed day on Wall Street on speculation the tech sector rally may be running out of steam.

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Futures showed Hong Kong and Australian equities may edge higher early Tuesday, while Japanese stocks looked flat. While various sectors outside the technology world advanced on Monday, Nvidia extended a three-day rout of about $430 billion — crossing the technical threshold of a correction. However, the chipmaker at the heart of the artificial-intelligence revolution remains up almost 140% this year and is still the most-expensive stock on the benchmark index.

The S&P 500 fell below 5,450. Energy and financial shares rose as tech retreated. The Nasdaq 100 lost over 1% after coming close to the 20,000 mark last week. Nvidia sank 6.7% Monday. A gauge of chipmakers dropped 3%, with 29 of its 30 stocks down. The Dow Jones Industrial Average outperformed.

“We remain concerned about a near-term unwind of many year-to-date leaders,” said Jonathan Krinsky at BTIG. “If the S&P 500 is going to avoid a bigger pullback into July, bulls need to see continued rotation below the surface.”

Treasury 10-year yields fell two basis points to 4.23% while Bitcoin slumped below $60,000 before rallying early Tuesday. Losses are piling up in the crypto market after its second-worst weekly decline of 2024, a reflection of cooling demand for Bitcoin exchange-traded funds and uncertainty over monetary policy.

In Asia, traders will be watching for further signs of pressure on the world’s second-biggest economy. Data released Monday showed China’s fiscal revenue shrank at the fastest pace in more than a year, fueling expectations that the government could make another rare mid-year budget revision to aid a recovery.

Elsewhere, Japan’s top currency official warned that authorities stood ready to intervene in markets 24 hours a day if necessary as the yen remained under pressure, not far from the weakest level in about 34 years.

In the US, more than a quarter of respondents in the latest MLIV Pulse survey plan to cut their stock holdings over the next month. That compares to 19% who expect to add exposure, and the gap between the potential sellers and buyers in the largest since October.

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The S&P 500 is expected to close the year at 5,606, according to a median of 586 responses. That’s less than 3% above current levels, indicating that the rally has little left after a 14% gain so far in 2024. Additionally, almost half of survey participants expect a correction to begin later this year.

Oil climbed, with a softer dollar and rising tensions with Russia providing support. The easing greenback also helped gold erase some of Friday’s loss, edging up 0.3%.

Key events this week:

• US Conference Board consumer confidence, Tuesday

• Fed’s Lisa Cook, Michelle Bowman speak, Tuesday

• US new home sales, Wednesday

• China industrial profits, Thursday

• Eurozone economic confidence, consumer confidence, Thursday

• US durable goods, initial jobless claims, GDP, Thursday

• Nike releases earnings, Thursday

• Japan Tokyo CPI, unemployment, industrial production, Friday

• US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday

• Fed’s Thomas Barkin speaks, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 7:29 a.m. Tokyo time

• Hang Seng futures rose 0.5%

• S&P/ASX 200 futures rose 0.5%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%

• The euro was little changed at $1.0734

• The Japanese yen was little changed at 159.60 per dollar

• The offshore yuan was unchanged at 7.2832 per dollar

• The Australian dollar was little changed at $0.6656

Cryptocurrencies

• Bitcoin rose 1.1% to $60,122.26

• Ether rose 1.1% to $3,344.63

Bonds

• The yield on 10-year Treasuries declined two basis points to 4.23%

• Japan’s 10-year yield advanced 1.5 basis points to 0.985%

• Australia’s 10-year yield was little changed at 4.22%

Commodities

This story was produced with the assistance of Bloomberg Automation.

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