Tech giants such as Amazon and Intel reported earnings that fell short of expectations. Combined with market concerns over massive capital expenditure in the AI sector, this weighed on risk appetite and dragged emerging market equities lower. The MSCI Emerging Markets Index fell 1.3% on Friday, with intraday losses at one point exceeding 2%. Asian stock markets came under notable pressure, with markets carrying higher technology weight leading the declines; South Korea's KOSPI, an important bellwether for the global AI trade, fell 16% during the month. Citigroup strategists including Luis Costa noted in a report that emerging markets continue to face competing macroeconomic factors, and that oil prices, AI market sentiment, and the El Niño cycle may continue to dominate market direction. The emerging market currency index fell 0.3%, weakening for a third consecutive day. Meanwhile, the technology stock sell-off drove buying of safe-haven assets such as U.S. Treasuries.