The MSCI Asia Pacific Index fell 0.5% as selling in technology stocks resumed after a rebound on Tuesday. The Kospi Index in South Korea, a bellwether for artificial intelligence investments, dropped 1.7%. The Nikkei in Japan also declined.

Contracts for the S&P 500 and the Nasdaq 100 indexes were little changed after the Wall Street benchmarks had a volatile session on Tuesday, with chip stocks coming under pressure. The Nasdaq 100 fell 1.1% as investors continued rotating out of tech shares that have driven much of this year’s rally.

Weighing on the sentiment, Brent crude rose 0.8% to $92.15 a barrel after US forces hit Iran following the downing of an American helicopter. The dollar, the haven of choice since the Middle East conflict started, strengthened against all its Group-of-10 peers as the attacks threatened the fragile ceasefire as well as efforts to secure a deal to reopen the Strait of Hormuz.

Increasing volatility is testing a market that has surged to record highs on optimism about easing geopolitical tensions and the artificial intelligence buildout. With strong US jobs data damping expectations for Federal Reserve rate cuts, investors now face a key test on Wednesday with the release of US inflation data, which may offer fresh clues on whether policymakers will keep rates higher for longer.

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“Exuberance has been building for months, pushing stocks to one record after the next,” said John Cunnison, chief investment officer at Baker Boyer Bank. “So anything perceived to be negative for equities — from higher inflation to even the potential for rate hikes — will knock the market off its footing after a historic run.”
The retreat in technology shares on Wall Street coincided with a broadening rally across the rest of the market, as nine of the S&P 500’s 11 sectors advanced Tuesday. Defensive corners led the gains, with real estate climbing 2.1%, health care rising 1.3% and utilities adding 1.1%. Tech and energy were the lone decliners.The rotation offered a contrast to a rally that has been increasingly concentrated in a handful of technology giants.

“As much as we love to see tech’s leadership, it would be constructive to see this rally broaden out to other sectors,” said Bret Kenwell at eToro. “When leadership is concentrated in one corner of tech, the market’s foundation gets a little wobblier.”

In other corners of the market, the yen hovered near its weakest level since April, keeping traders on alert for possible intervention by Japanese authorities to support the currency. Gold dropped 1% to about $4,220 an ounce.

Attention now turns to Wednesday’s US inflation report. While oil has retreated from multiyear highs reached in April, strong US jobs data last week has increased bets that the Fed will need to raise interest rates.

Economists surveyed by Bloomberg expect annual CPI inflation to accelerate to 4.2% in May from 3.8% a month earlier. Core inflation, which excludes food and energy, is projected to edge up to 2.9% from 2.8%.

“The combination of stronger payrolls and uncomfortably elevated inflation has left markets penciling in higher odds of the Fed having to tighten policy,” said Gennadiy Goldberg, head of US rates strategy at TD Securities. “This has continued to leave yields elevated, though risk-off moves in equities appear to be helping to backstop yields.”

• The fund posted returns of -0.06% ((Institutional shares)) and -0.12% ((Investor A shares, without sales charge)) for the first quarter of 2026.

• The fund’s underperformance of its benchmark was driven by weakness in the

A major Carl’s Jr. franchisee is planning to offload 59 locations across California after filing for bankruptcy protection earlier this year. 

Harshad Dharod intends to close 10 restaurants and sell 49 others operating under the Anaheim-born fast-food chain, according to the Los Angeles Times.

Dharod’s Friendly Franchisees Corporation, which touts itself as the largest California-based Carl’s Jr. franchisee, has acquired at least 65 locations since 2000, according to its website.

However, rising operating costs and California’s $20-per-hour fast-food minimum wage have reportedly strained the business, prompting the company to file for Chapter 11 bankruptcy protection in April, the Times reported. 

PIZZA HUT TO CLOSE AROUND 250 LOCATIONS

A customer is seen leaving a Carl’s Jr. fast food location on Aug. 16, 2023.  (Xavi Lopez/SOPA Images/LightRocket / Getty Images)

Dharod also blamed what he described as a lack of support and innovation from Carl’s Jr. for the restaurants’ financial struggles, according to the outlet. 

Bankruptcy filings reportedly show Dharod’s restaurants generated more than $6 million in monthly revenue while losing more than $600,000 per month in 2026. 

Understaffing, workplace injuries and violent encounters with customers also contributed to the restaurants’ challenges, employees told the outlet. 

RED LOBSTER TO CLOSE TIMES SQUARE RESTAURANT AFTER MORE THAN 20 YEARS

Carl’s Jr.’s logo seen on a Carl’s Jr. restaurant in the Mill Woods area of Edmonton, Alberta, Canada, on May 28, 2025. (Artur Widak/NurPhoto / Getty Images)

A spokesperson for Carl’s Jr. previously told Restaurant Business that the restructuring is specific to Dharod’s operations and will not affect other Carl’s Jr. locations. 

“We are aware that Carl’s Jr. franchisee Harshad Dharod entities and its affiliates, which together independently own and operate certain Carl’s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,” a company representative said in a statement. 

“This situation is specific to this individual’s financial and business circumstances.

Customers exit a Carl’s Jr. location in Madrid, Spain, on Oct. 24, 2023. (Xavi Lopez/SOPA Images/LightRocket / Getty Images)

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According to brokerage firm National Franchise Sales, there is already interest from prospective buyers, the Times reported.

If the locations are sold, operations could continue largely uninterrupted, as employees and managers often remain in place when franchise ownership changes hands. 

FOX Business reached out to Carl’s Jr., Harshad Dharod and the Friendly Franchisees Corporation for more information.