Emerging Markets Rebound From Tech Selloff

Emerging-market stocks, hit by a technology-driven selloff, partially recovered on Tuesday, led by gains in Taiwan and South Korea. Despite the rebound, investor sentiment remains cautious due to concerns about the US economy, artificial intelligence, and geopolitical factors. The recent selloff, attributed to various factors, pushed the MSCI stocks gauge below its 200-day moving average and resulted in significant losses in market capitalization. While some investors see the bounce as a technical rebound, others advise using it as an opportunity to adjust positions given economic uncertainties and stretched valuations. The recovery also extended to developing-nation currencies, with the Mexican peso gaining against the dollar.