Tech Sell-Off and Geopolitical Strain Drag Down Global Markets

The tech sector bore the brunt of the volatility despite robust fundamentals. Taiwanese chip giant TSMC reported a 77% surge in earnings, yet the figures failed to meet the lofty expectations of a market hyper-focused on artificial intelligence. This skepticism rippled outward, pulling the Dow Jones, S&P 500, and Nasdaq into the red as traders pivoted away from overheated growth plays.

Macroeconomic signals provided little relief, as recent U.S. retail sales and jobless claims data painted a fragmented picture of the economy. While these figures did little to shift the Federal Reserve’s projected interest rate trajectory, they bolstered the dollar and pushed Treasury yields higher, increasing the cost of capital. Compounding the unease, the standoff between Iran and the U.S. kept risk appetite suppressed, leaving investors to navigate a landscape where even strong corporate performance is no longer enough to insulate portfolios from broader geopolitical and monetary pressures.