US and Asian chip stocks tumble as oil spikes amid Middle East tensions

A broad sell‑off hit technology and semiconductor equities after the Korean KOSPI index plunged, sending SK Hynix down 15% and dragging Micron, Intel, Marvell and other chip makers lower. In the United States, the Dow Jones slipped 0.3% to 52,498, the S&P 500 fell 0.8%, and the Nasdaq 100 dropped 1.9% as oil prices jumped about 9% to $83 a barrel following renewed fighting between the United States and Iran in the Strait of Hormuz.

The heightened geopolitical risk revived inflation concerns and forced the Federal Reserve to keep rates high, while President Donald Trump announced plans to levy fees on vessels transiting the strait. The chip sector’s weight in major indexes amplified the market decline, prompting investors to reduce holdings in semiconductor ETFs such as SMH and SOXX.

At the same time, the crypto market experienced a sharp correction. Bitcoin tested $61,800 and Ethereum fell to $1,750, with 24‑hour liquidations reaching $3.67 billion and the fear‑and‑greed index dropping to 22, indicating extreme fear. Analysts linked the crypto sell‑off to the broader risk‑off environment and the pressure on chip stocks.