Overview
- Global equity markets experienced a sharp, synchronized pullback driven by renewed questions about whether massive AI spending can be made profitable, with major tech indexes sliding after a volatile run-up.
- Chipmakers led the losses with very large declines in Seoul, Tokyo and Europe, reflecting fears that semiconductor demand and stretched valuations may not justify recent price gains.
- SpaceX’s disclosed plan to seek up to $20 billion in debt financing intensified investor concern about how tech companies are funding costly AI projects and helped amplify the sell-off.
- Progress in US‑Iran talks and a US two‑month suspension of Iranian oil sanctions reopened shipping through the Strait of Hormuz and pushed Brent under $75, easing near‑term energy risk and helping bond yields fall.
- Micron’s strong quarterly results have so far produced volatile trading rather than calm, and markets will watch upcoming US inflation data and corporate earnings for signs whether the reassessment of AI and chip stocks will continue or stabilize.