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Chip stocks slump as oil, US-Iran tensions and AI trade worries hit
The Philly semiconductor index fell 9.97% last week and slid 20.23% from its June 22 peak, while Brent rose for a ninth straight night of US strikes against Iran.
Deutsche Bank strategists said rising oil and gas prices, escalating US-Iran tensions, and renewed doubts about the AI trade weighed on global equities, with chip stocks leading the declines.
Chipmakers dragged the Philly semiconductor index into bear-market territory, with the index down 9.97% last week and falling 20.23% from its June 22 closing peak. The S&P 500 fell 1.55% over the same period, and Japan’s Nikkei posted its biggest decline since the week of Liberation Day tariff announcements, dropping 6.44%.
The outlook for markets remained mixed as European equities proved more resilient, while equity futures were modestly higher despite ongoing geopolitical risks. In response to the conflict, Brent was up 2.45% to $90.26 per barrel after a ninth consecutive night of US strikes against Iran.
FXStreet also noted that Chinese related equities strengthened, with the Hang Seng up 2.04%, the CSI 300 up 1.55%, and the Shanghai Composite up 1.18%, while the S&P/ASX 200 edged higher and Japanese markets were closed for Marine Day.
Latest closeBrent $84.94 ▼0.0%|S&P 500 7,533.77 ▼0.5%|Nikkei 225 68,751.51 ▲1.5%