Asian equities fell today, with the MSCI Asia-Pacific index down about 1.1%. South Korea's Kospi plunged by more than 3%, while Samsung Electronics and SK Hynix each lost over 4%. Taiwan's market dropped by 3.6%, China's CSI 300 eased by 0.1%, and Japanese markets were closed for a holiday. US and European futures also traded lower.

Pressure originates in the US. The Philadelphia semiconductor index extended its rout to a third day, down about 12% over that stretch, and the Nasdaq 100 is more than 10% off its peak and in a technical pullback. As a result, investors are trimming positions in crowded AI-heavy portfolios, with Korea — given its semiconductor exposure — feeling the impact first in equity prices.

There is plenty on the schedule. Americans vote today, followed by September JOLTS data, with a modest rise expected. Thursday brings initial jobless claims, which are expected to remain near multi-year lows, and Friday features the monthly payrolls report. Economists forecast an October jobs gain of about 65,000, with unemployment at 4.2%. Note that September's payroll gain was 29,000.

As for the Middle East narrative, Brent crude rallied by 1.7% to $106.53/bbl after an earlier near?8% drop on Monday. Iran's president said the supreme leader has expanded the government's authority in negotiations, and Trump hinted at diplomatic progress. Yet military activity has continued into a ninth month, keeping markets on edge and driving sensitivity in oil prices.

The oil sell-off helped gold stage a rebound. The metal rose by 1.9% on Monday, marking the best day in two months, and now trades near $3,950/oz. Gold is down about 6.8% in October and has broken the $4,000 mark. Silver sits around $50.23/oz.

I expect a nervous week with chips remaining under pressure until the market receives clearer evidence of returns from AI investments. Therefore, expect heightened volatility in Asian and tech markets over the coming sessions.

Regarding S&P 500 technicals, buyers' immediate task is to overcome the resistance level of $7,544. That would signal upside and open the door to a push toward $7,574. Equally important for bulls is holding $7,607, which would strengthen buyers' positions. On a downward move amid weaker risk appetite, buyers must show up around $7,518. A break below that level would likely drive the index back to $7,495 and open the way to $7,474.