Stock markets around the world are sharply lower on July 17 as shares of companies tied to the artificial intelligence (A.I.) infrastructure buildout unwind.
In Asia, Tokyo’s Nikkei 225 index was down as much as 5% amid heavy selling of computer chipmakers and other A.I.-related companies.
South Korean markets were closed, but Taiwan’s main bourse was down 6.5% a day after Taiwan Semiconductor (TSM) announced plans to spend another $100 billion U.S. on fabrication plants in America.
TSM stock was down 7% in early trading on July 17.
Hong Kong’s Hang Seng index was down 2%, while China’s Shanghai Composite index lost 3%, falling to its lowest level in 11 months.
In Europe, Germany’s DAX index was down 0.3% while France’s CAC 40 declined 0.4%, and Britain’s FTSE 100 was largely flat.
In the U.S., the technology-laden Nasdaq Composite (NDAQ) index was down more than 550 points, or 2%, in premarket trading as stocks of chipmakers crumbled.
The benchmark S&P 500 index was down about 1% and the blue-chip Dow Jones Industrial Average was off by more than 300 points in pre-market trading.
Dragging markets lower were stocks of microchip and semiconductor makers such as Micron Technology (MU) and SanDisk (SNDK), which have fallen more than 15% in the last month.
Other chip stocks such as Intel (INTC) and Advanced Micro Devices (AMD) were down 4% in pre-market trading on July 17.
Also weighing on the stock market are surging oil prices as fighting between the U.S. and Iran intensifies.
Brent crude oil, the international standard, is up 2% to $86.20 U.S. a barrel and near its highest level in a month as the Strait of Hormuz shipping route near Iran is once again closed.
Elsewhere, gold prices have fallen below the key support level of $4,000 U.S. an ounce, Bitcoin (BTC) is down 2% and trading at $63,000 U.S., and the American dollar is unchanged.
