3 weeks ago
Global Shares Mixed as Tech Giants Slump on Wall Street
Stock markets around the world had a mixed day on Thursday.
Some markets went up, while others went down.
Investors sold shares of big technology companies that make computer chips.
These companies became very popular because of artificial intelligence, but some people worried prices had gotten too high.
A chip company in South Korea called SK Hynix saw its shares fall very sharply.
This also pulled down the main stock market in South Korea, which lost a lot of value.
In the United States, shares of Google's parent company and Microsoft also went down.
But not everything went down — companies like Disney and Booking Holdings went up after reporting strong profits.
Oil prices stayed steady at around $79 per barrel.
Many traders are worried because there is a conflict between the United States and Iran.
This conflict has made it harder to ship oil through an important waterway called the Strait of Hormuz.
On Friday, a big report about jobs in the United States will come out, and investors are waiting to see what it says.
Shares were mixed Thursday in Europe and Asia after declines for Big Tech and chip stocks, with South Korea's Kospi dropping 4.6%.
SK Hynix plunged 10.4% and Samsung Electronics fell 6.3%, extending a selloff in shares linked to the artificial-intelligence boom.
Brent crude traded near $79 a barrel as uncertainty over the US-Iran conflict and the Strait of Hormuz continued to weigh on markets.
US futures edged higher, with the S&P 500 future up 0.1% and the Dow future up 0.2%, ahead of Friday's July employment report.
On Wall Street, Alphabet fell 4% and Microsoft lost 1.1%, while Disney rose 3.6% and Booking Holdings jumped 6.6% on strong earnings.
Investors are bracing for the monthly nonfarm payrolls report for July, which analysts expect could trigger profit-taking and risk reduction.
The five-month-old US-Iran conflict has stifled global oil supply, pushing Brent as high as $102 a barrel at one point and fueling inflation.
- Who
- Global investors, Big Tech and chip companies including SK Hynix, Samsung Electronics, Alphabet and Microsoft, and US President Donald Trump
- What
- World stock markets traded mixed as technology and AI-related shares fell, while oil prices were steady amid Strait of Hormuz uncertainty
- Where
- South Korea, Japan, Hong Kong, mainland China, Australia, Europe, and Wall Street
- When
- Thursday, ahead of Friday's July US employment report
- Why
- Investors reduced risk ahead of the US jobs report and reacted to concerns about the five-month-old US-Iran conflict that has disrupted oil supplies
Caution / Bearish
Optimism / Bullish
Strait of Hormuz Reopening
Caution / Bearish
The deal to reopen the Strait of Hormuz has had many stops and starts, and the five-month-old conflict is still stifling oil supplies and rattling energy markets, so the uncertainty remains.
Optimism / Bullish
US President Donald Trump says a deal to reopen the Strait of Hormuz is coming soon, and oil prices have pulled back to around $79 a barrel from a peak of $102.
AI and Chip Stock Selloff
Caution / Bearish
The sharp declines in SK Hynix and Samsung Electronics show AI-linked stocks are in a rout and vulnerable to sustained selling.
Optimism / Bullish
The Asia chip selloff looks like a combination of profit-taking and risk reduction ahead of Friday's jobs report rather than a fundamental change in the AI boom.
US Market Strength vs Asian Declines
Caution / Bearish
Wall Street's gains are fragile since Big Tech giants like Alphabet and Microsoft are losing ground and Friday's jobs report could hit markets.
Optimism / Bullish
Strong corporate profits and expectations of more growth have been steering US stocks higher, with Disney and Booking Holdings beating forecasts.
Key facts
- Kospi (South Korea)
- Lost 4.6%, closing at 6,296.38
- SK Hynix
- Plunged 10.4%; fell 30% in early Seoul trading
- Samsung Electronics
- Lost 6.3%
- Brent crude
- Rose 0.3% to $79.70 a barrel
- US benchmark crude
- Unchanged at $75.21 a barrel
- S&P 500 (Wednesday close)
- Slipped 0.2% from all-time high to 7,723.55
- US-Iran conflict
- Five months old and stifling global oil supply
- July employment report
- Due Friday amid investor caution
Quotes
Stephen Innes
Portfolio manager at SPI Asset Management
“Asia’s chip selloff looks like a combination of profit‑taking and risk reduction ahead of Friday’s nonfarm payroll report”
thehansindia.com
Sources
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