Global stock markets experienced a downturn on Thursday, primarily driven by the continued decline of technology shares and escalating tensions between the United States and Iran, which have negatively impacted investor sentiment. Amid these developments, oil prices held near one-month highs due to concerns about Middle East stability.
Despite the previous day’s gains on Wall Street, markets in Asia and Europe struggled to maintain momentum. South Korea’s Kospi index saw a significant drop of over 6%, heavily influenced by a more than 11% decline in SK hynix shares. Investors are increasingly wary that the recent AI-driven rally in semiconductor stocks might be losing steam, leading to a broader retreat across memory-chip and semiconductor sectors.
However, Taiwanese semiconductor giant TSMC defied the trend by posting a record quarterly profit, with net income rising over 77% in the second quarter thanks to robust demand for AI hardware. Additionally, TSMC announced plans to further invest $100 billion in expanding its manufacturing facilities in Arizona, signaling confidence in its long-term growth strategy.
In contrast to the regional downturns, Hong Kong’s stock market rose by more than 1%, buoyed by advancements in Chinese semiconductor companies. Meanwhile, in the United States, major indexes closed higher on Wednesday, supported by gains among technology leaders. U.S. investor confidence improved following a report that producer prices fell 0.3% in June, driven by reduced energy costs and the possibility that the Federal Reserve might hold off on raising interest rates in the near future. Nevertheless, analysts cautioned that rising tensions between Washington and Tehran could lead to increased market volatility.
In corporate developments, German food-delivery firm Delivery Hero saw its shares rise in Frankfurt trading after agreeing to a takeover by ride-hailing giant Uber. The deal, valued at €12.7 billion ($14.6 billion), marks a significant consolidation in the food delivery and transportation sectors.