Global stock markets experienced significant volatility this week as investors reacted to a sharp sell-off in technology shares and renewed military tensions between Iran and Israel.

Key Points

• South Korea’s Kospi index dropped 8.3%, triggering a 20-minute trading halt, while Japan’s Nikkei index fell 3.9%.
• Major tech stocks faced heavy losses, with Samsung shares closing down 10% and semiconductor giant TSMC falling 3%.
• US markets showed resilience, with the Nasdaq and S&P 500 closing slightly higher despite earlier concerns over interest rates and inflation.
• Brent crude oil prices spiked to $97.34 per barrel following military strikes between Iran and Israel before retreating to approximately $94.
• Investors are increasingly questioning the valuation of artificial intelligence investments, demanding clearer evidence of revenue growth from tech companies.

Why it Matters

The current market instability reflects a growing investor skepticism regarding the sustainability of the recent artificial intelligence boom. As geopolitical tensions threaten energy prices and inflation, market participants are shifting their focus toward companies with more reliable income streams and proven profitability.