This content was published on
July 13, 2026 - 11:42
5 minutes
(Bloomberg) — A selloff in South Korean chipmakers drove global technology stocks lower while oil and bond yields climbed after a weekend of attacks and counterstrikes in the Middle East.Concerns that the artificial-intelligence boom has become overstretched sent SK Hynix Inc. and Samsung Electronics Co. plunging 15% and 11%, respectively, in Seoul. Nasdaq 100 futures fell 0.9% as chip stocks such as Micron Technology Inc. dropped sharply in premarket trading. S&P 500 contracts slipped 0.2%.South Korea is increasingly shaping sentiment around the global AI trade after semiconductor stocks drove this year’s outperformance of the Kospi index. However, the near-parabolic rally has turned volatile in recent weeks as investors question whether the advance has run too hard at a time when it’s far from certain whether hyperscalers’ spending will generate strong returns.Traders also pointed to the risk of a rotation into SK Hynix’s newly listed American depositary receipts, which surged on their debut on Friday.An escalation in violence in the Middle East also weighed on sentiment as the US and Iran exchanged strikes into Monday and issued conflicting claims over whether the Strait of Hormuz was open. The flare-up sent Brent as much as 5% higher before it pared gains to trade 1.8% higher at $77.40 a barrel.“The sharp selloff in Korean equities from the June peak is raising questions with some investors regarding the sustainability of the AI trade more broadly,” said Daniel Murray at EFG Asset Management. “With Middle East tensions rising again, this too has added to market consternation.”Bonds in Europe and Asia were the hardest hit, with the yield on two-year gilts up five basis points to 4.27%. Treasuries pared losses to trade little changed. The dollar barely budged while gold and Bitcoin fell.“The market was almost feeling that the situation in the Middle East was concluded and so it was risk-on. What’s clear is that that’s not the case, so you’re seeing a lot more risk-off,” said Helen Jewell, international chief investment officer for fundamental equities at BlackRock Inc.In a busy week where a wide range of catalysts can set the direction for markets, Kevin Warsh is due to make his first appearance before Congress as Fed chairman on Tuesday. The session will be preceded by June consumer price figures from the Bureau of Labor Statistics.Tuesday will also see a slew of earnings reports from Wall Street’s biggest banks, followed by critical tech earnings from chipmaking equipment maker ASML Holding NV the following day in Europe.“This week is going to be one of volatile sideways movements before the rally can accelerate again,” said Joachim Klement, head of strategy at Panmure Liberum. “We do remain cautious about the AI trade, though, as this is still very much overbought.”Corporate News:Taiwan Semiconductor Manufacturing Co. reported quarterly sales rose 36%, meeting high expectations and signaling global demand for AI hardware remains intact. Seven & i Holdings Co.’s move toward selling a stake to SoftBank Corp. and PayPay Corp. signals a willingness to surrender some control over its future in return for the benefits of being allied with key strategic partners. Nippon Paint Holdings Co. has made multiple offers for Akzo Nobel NV’s decorative paints business in the past month, according to people with knowledge of the matter. Some of the main moves in markets:StocksThe Stoxx Europe 600 was little changed as of 10:35 a.m. London time S&P 500 futures fell 0.2% Nasdaq 100 futures fell 0.9% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index fell 1.8% The MSCI Emerging Markets Index fell 2.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1430 The Japanese yen fell 0.2% to 162.03 per dollar The offshore yuan was little changed at 6.7830 per dollar The British pound fell 0.1% to $1.3388 CryptocurrenciesBitcoin fell 1.7% to $63,047.99 Ether fell 1.9% to $1,785.14 BondsThe yield on 10-year Treasuries advanced one basis point to 4.57% Germany’s 10-year yield advanced two basis points to 3.08% Britain’s 10-year yield advanced three basis points to 4.90% CommoditiesBrent crude rose 1.9% to $77.48 a barrel Spot gold fell 1.2% to $4,071.37 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Macarena Muñoz and Sagarika Jaisinghani.©2026 Bloomberg L.P.
