The Nasdaq Composite fell 1.55% to close at 25,873.18, snapping a three-day winning streak. The decline was driven by a notable sell-off in the technology and semiconductor sectors, which followed a sudden slump in Asian chipmakers. Market sentiment was further pressured by renewed concerns regarding the massive capital expenditures that major technology companies continue to allocate toward artificial intelligence infrastructure.
• Germany’s DAX index managed a modest recovery, closing 0.19% higher at 25,114 points. The Frankfurt exchange was supported by solid gains in the chemical and telecommunications sectors. However, the broader market remained cautious as technology components mirrored the global semiconductor slide. Additionally, fresh hostilities in the Middle East pushed energy prices higher, sustaining inflation fears across Europe’s energy-reliant industrial sectors.
• Japan’s Nikkei 225 index retreated 1.92% to settle at 67,242.73. The sharp drop was primarily concentrated in chip-related equities, influenced by a parallel decline in South Korea’s memory sector. Shares of major firms like Advantest, Tokyo Electron, and Kioxia recorded substantial losses. The market also faced pressure from surging global crude oil prices, heightening concerns over rising operational costs as Japanese corporate earnings season begins.
• Brent crude oil futures surged over 2.3% to trade near $85.24 per barrel. The significant price increase was triggered by renewed military strikes involving the United States and Iran. These escalating geopolitical hostilities have severely disrupted maritime traffic through the vital Strait of Hormuz, maintaining persistent threats to international energy shipments and sustaining a high risk premium in the global crude oil market.