Stock markets fall as concerns persist over tech firms at heart of AI boom
Summary
Global stock markets fell due to worries about technology companies involved in artificial intelligence and increased oil prices after conflicts between Iran and Israel. Asian and European markets dropped sharply, while oil prices rose nearly 5% amid fears the Middle East conflict could escalate.Key Facts
- Stock markets in Asia and Europe fell sharply on Monday, following a sell-off in US tech stocks the previous week.
- The South Korean Kospi index dropped nearly 9%, partly caused by large losses in chipmaker shares like Samsung Electronics and SK Hynix.
- Oil prices rose almost 5% to $97.60 a barrel after Iran and Israel exchanged fire, raising concerns about regional stability.
- European tech companies involved in AI, including Besi, ASML, Aixtron, and Nokia, saw share prices fall between 3% and 6%.
- Investors worry about the large spending plans of tech companies during a period of possible higher interest rates and inflation.
- Experts say investors now want clearer proof that AI companies can make money and spend wisely before investing.
- The Middle East conflict risks blocking the strait of Hormuz, a key shipping route for a fifth of the world’s oil and gas supply.
- President Trump said before the conflict he would advise Israel on the war but later said Israel’s strikes in Lebanon were not coordinated with the US and expressed unhappiness about them.
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