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Chip stocks drag US and Europe lower amid stagflation worries

The selloff extended to major benchmarks worldwide, with Europe’s STOXX 600 marking a fifth straight session down and South Korea’s KOSPI falling about 5.4% in Asia trading.

Reported · Written up by our desk · Indices

Global equities slipped again as higher yields and stronger oil prices reinforced a stagflationary backdrop, Deutsche Bank strategists said, weighing on markets on both sides of the Atlantic.

In the US, the S&P 500 fell for a third consecutive session, down 0.6% on the day, with chip stocks driving the decline. The Philly semiconductor index slid 5.0%, while the Nasdaq dropped 1.3%, and the Mag 7 was down 0.9% led lower by Meta.

The weakness also spread beyond the US, with Europe’s STOXX 600 down 0.7% for a fifth straight decline, and the DAX and CAC 40 both retreating by about 0.8%. Asian markets posted sharp losses in semiconductor-heavy benchmarks, including South Korea’s KOSPI down 5.4%, alongside declines for Japan’s Nikkei, China’s CSI 300, and the Shanghai Comp.

Equity futures pointed to additional weakness ahead, with S&P 500 and DAX futures both slipping in early moves.

Latest closeS&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%|Nikkei 225 68,308.59 ▲1.2%

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