US and Asian Stock Markets Slide Amid AI Spending Concerns, Oil Prices, and US‑Iran Tensions
Investors trimmed exposure to technology and semiconductor stocks after U.S. tech giants reported massive AI‑related capital outlays, prompting a sell‑off in the Nasdaq and downstream pressure on Asian markets. Rising oil prices, briefly topping $100 a barrel, reignited inflation worries and pushed bond yields to their highest levels since 2011 in Germany. At the same time, renewed U.S.‑Iran military tension and the United States' announcement of new tariffs on 60 trading partners added geopolitical risk.
In Asia, the South Korean KOSPI fell 5.7%, the Japanese Nikkei 225 dropped 2.8%, and China’s Shanghai Composite slipped 1.6% as investors fled riskier tech shares. European indices were mixed, with some gains on lower oil prices but overall pressure from the same drivers. In the United States, the Dow Jones rose about 0.5%, the S&P 500 was flat, and the Nasdaq Composite declined roughly 0.6% for the week.
The broader market narrative links elevated AI spending, volatile oil markets, and heightened geopolitical friction as the main catalysts for the recent broad‑based equity weakness.