Global stock markets experienced a downturn on Thursday as technology shares continued to slide and tensions between the United States and Iran added pressure on investor confidence. Despite the decline, oil prices held steady near one-month highs due to ongoing concerns about stability in the Middle East.
Asian and European markets were unable to maintain the momentum seen on Wall Street the previous day. South Korea’s Kospi index saw a significant drop of over 6%, led by a steep decline in semiconductor stocks such as SK hynix, which fell more than 11%. This downturn was fueled by growing skepticism about whether the substantial investments in the artificial intelligence sector could sustain the high valuations of many tech companies, prompting a broader retreat in memory-chip and semiconductor stocks.
In contrast to the overall market trend, Taiwan Semiconductor Manufacturing Company (TSMC) reported a record-breaking quarterly profit, with net income rising over 77% in the second quarter, driven by robust demand for AI hardware. The company also unveiled plans to invest an additional $100 billion in manufacturing facilities in Arizona, signaling continued confidence in the sector’s growth.
Meanwhile, Hong Kong’s stock market defied the downward trend, gaining over 1% as Chinese semiconductor firms advanced. In the U.S., major indexes closed higher on Wednesday, buoyed by gains in technology giants. Investor sentiment was lifted by a 0.3% drop in U.S. producer prices for June, attributed to lower energy costs, which stoked expectations that the Federal Reserve might refrain from hiking interest rates in the near future. Nonetheless, analysts cautioned that rising tensions between Washington and Tehran could inject volatility into the markets.
In corporate news, the German food delivery company Delivery Hero agreed to a takeover by the ride-hailing behemoth Uber in a deal valued at €12.7 billion ($14.6 billion), resulting in a surge in Delivery Hero’s share price during Frankfurt trading.