US-Iran Tensions and Decline in Tech Stocks Reduce Risk Appetite in Global Markets
While losses in chipmakers and geopolitical uncertainties weigh on stock indices, futures indices signal a recovery as the selling trend in tech stocks eases. In the cryptocurrency market, Bitcoin has crossed above the $80,000 level once again.
Global markets are following a cautious course in the shadow of sanction tensions between the US and Iran, tariff war concerns, and the US Treasury Department's plans for the bond market.
Selling Pressure in Tech Sector Led by Nvidia
The sell-off wave in the semiconductor sector, led by Nvidia, negatively impacted stock indices. Shares of the company fell for a seventh consecutive session, recording its longest losing streak since 2022.
Following news of AI-focused price hike notifications, an ETF covering memory chipmakers lost 5.9 percent in value. At daily closes, the Nasdaq 100 index declined by 1 percent, while the S&P 500 index dropped by 0.3 percent.
Recovery in Futures Indices and Rise in Bitcoin
As pressure on tech stocks eased in the morning hours, signs of a higher opening were observed in both US and European futures indices. The Asia-Pacific equity index also recovered its intraday losses to trade flat.
Optimism returning to the markets, supported by a weakening dollar and expanded macroeconomic measures, pushed the Bitcoin price above $80,000 for the first time since May.
Latest Situation in Commodity and Currency Markets
Following statements by US Treasury Secretary Bessent that sanctions could be applied to countries trading with Iran, the barrel price of Brent crude oil rose by 0.3 percent to the $92 level.
Across emerging market currencies, the Colombian peso, Mexican peso, and Brazilian real were among the biggest losers, while the Korean won and Chilean peso stood out by diverging positively.