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(Bloomberg) — A fresh wave of selling swept through global equity markets as an escalation in the Middle East collided with mounting anxiety over technology stocks, rattling investors and derailing a rebound toward record highs.
Chipmakers, which had powered the recovery from war-driven lows, swung violently and sank 4%. The Nasdaq 100 lost 2%. While most shares in the S&P 500 rose, weakness in tech sent the index lower. Oil pared its drop as President Donald Trump said the US must respond to Iran’s attack on an American helicopter, dimming hopes for a quick resolution to their conflict.
The renewed volatility in semiconductor giants comes after a surge that had put the group on track for its best year since 1999. While the industry’s long-term outlook remains tied to a flood of spending on artificial intelligence, investors are increasingly questioning whether valuations can keep pace after one of the market’s most powerful advances.
“As much as we love to see tech’s leadership, it would be constructive to see this rally broaden out to other sectors,” said Bret Kenwell at eToro. “When leadership is concentrated in one corner of tech, the market’s foundation gets a little wobblier.”
