Stock indices closed sharply lower yesterday. The S&P 500 fell by 0.54%, while the Nasdaq 100 tumbled by 1.18%. The Dow Jones Industrial Average held up, rising by about 0.03%.

The MSCI Asia Pacific index has gained roughly 7.1% this month, its strongest February since inception. Europe's benchmark rose by about 3.6%, marking an eighth consecutive monthly gain, the longest stretch in nearly 13 years. By contrast, US equity indices were down for the month. Asian markets outperformed as investors piled into companies supporting AI infrastructure, viewing regional firms as critical links in the supply chain.

South Korea, a bellwether for AI-hardware investment, posted outstanding returns in Asia. The Kospi jumped by roughly 20% this month. Besides, it is the world's best=-performing major index this year, up about 49% year?to?date.

According to Gama Asset Management SA, there is a constructive shift in positioning, with investors gradually increasing their exposure to Asia. Local investors are also rotating into domestic stocks in search of stability amid heightened volatility in US assets.

Global asset managers with more than $20 trillion under management have grown more optimistic about emerging-market equities, FX, local bonds, and credit — a shift that could fuel further record gains in the sector.

Elsewhere, Treasuries rallied slightly: the 10-year US yield slipped by one basis point to 3.99%, its lowest level since late November.

As for commodities, oil stabilised after the US and Iran agreed to continue nuclear talks next week following Thursday's round. Gold is poised to complete its longest monthly winning streak since 1973, with February gains of more than 6% marking a seventh straight monthly rise.

As for the S&P 500 technical analysis, buyers' immediate task is to overcome the resistance level of $6,896. This would indicate renewed upside and open the way to $6,914. Gaining control of $6,930 would further bolster bulls. On the downside, buyers should defend around $6,883. A break below that level would likely bring the trading instrument back down to $6,871 and could open the path to $6,854.