Global stock markets saw a general decline on Thursday, primarily due to extended losses in technology shares and heightened tensions between the United States and Iran, which have impacted investor sentiment. Despite this, oil prices stayed close to one-month highs amid ongoing concerns regarding stability in the Middle East.
In Asia and Europe, markets were unable to maintain the momentum observed on Wall Street the previous day. Notably, South Korea’s Kospi index experienced a significant drop of over 6%, largely driven by a more than 11% fall in shares of chipmaker SK hynix. Investors are increasingly worried that the recent surge in semiconductor stocks, fueled by advancements in artificial intelligence, might be losing steam. These concerns over high valuations have sparked a broader sell-off in memory-chip and semiconductor stocks.
Despite this market downturn, Taiwan Semiconductor Manufacturing Company (TSMC) reported a record quarterly profit, with net income rising over 77% in the second quarter, fueled by strong demand for AI hardware. The company also revealed plans to invest an additional $100 billion in its manufacturing facilities in Arizona.
In contrast to the broader market trend, Hong Kong’s stock market recorded gains of more than 1%, driven by advances in Chinese semiconductor companies. Meanwhile, in the United States, major stock indexes closed higher on Wednesday, buoyed by gains in technology giants. Investor confidence received a boost after US producer prices decreased by 0.3% in June, aided by lower energy costs and the possibility that the Federal Reserve might refrain from raising interest rates in the near future. However, analysts cautioned that rising hostilities between Washington and Tehran could lead to increased market volatility.
In corporate developments, German food-delivery company Delivery Hero agreed to be acquired by ride-hailing giant Uber in a transaction valued at €12.7 billion ($14.6 billion), resulting in a rise in Delivery Hero shares during Frankfurt trading.