Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
U.S. stocks closed lower on Tuesday as a sharp sell-off in technology shares weighed heavily on Wall Street. Concerns surrounding artificial intelligence (AI) demand intensified after a major decline in South Korea’s technology sector, triggering broad weakness in semiconductor and AI-related stocks.
The S&P 500 fell 1.4% to 7,365.67, while the Nasdaq Composite dropped 2.2% to 25,587.04. The Dow Jones Industrial Average was relatively resilient, ending 0.1% lower at 51,665.43.
Investor sentiment deteriorated after reports suggested that South Korean memory-chip giant SK Hynix may shift part of its production focus from advanced AI-related high-bandwidth memory (HBM) chips to traditional DRAM products. The news sparked fears that AI demand growth could be slowing, sending SK Hynix shares down more than 12% and dragging Samsung Electronics lower. South Korea’s KOSPI index plunged 10%, marking one of its largest single-day declines on record.
The weakness quickly spread to U.S. markets, where semiconductor stocks suffered significant losses. The Philadelphia Semiconductor Index plunged 7.9%, while major chipmakers including Micron, Marvell Technology, Lam Research, and Sandisk experienced steep declines. The S&P 500 Technology sector dropped 3.7%.
Market participants are increasingly questioning whether massive AI infrastructure investments will generate sufficient returns to justify current valuations. Companies across the technology industry continue to raise capital for AI expansion projects, creating additional concerns about future profitability and shareholder dilution.
Adding to the pressure, expectations for a more hawkish Federal Reserve have strengthened. Futures markets now indicate the possibility of two interest-rate hikes this year, pushing bond yields higher and reducing investor appetite for growth-oriented technology stocks.
Despite the market sell-off, economic data offered some support. S&P Global’s flash U.S. Composite PMI rose to 52.2 in June, its highest level in five months, while both manufacturing and services activity exceeded expectations.
Meanwhile, oil prices declined as shipping activity through the Strait of Hormuz increased. Traders also monitored conflicting statements from U.S. and Iranian officials regarding nuclear inspections and ongoing diplomatic negotiations.
Among individual stocks, SpaceX recovered from early losses and finished slightly higher after briefly falling below its IPO opening price. Carnival shares dropped nearly 5% after issuing weaker-than-expected profit guidance, citing higher fuel costs and geopolitical uncertainty.
