Chipmaker Selloff and Middle East Conflict Trigger Global Market Slide

A sharp retreat in semiconductor stocks combined with escalating military friction in the Middle East to rattle global exchanges on Friday. Investors, increasingly wary of the longevity of the AI-fueled bull run, pivoted toward defensive assets as indices from Taipei to London sustained heavy losses.

Editorial·July 17, 2026·reads: 170

Chipmaker Selloff and Middle East Conflict Trigger Global Market Slide

The STOXX 600 index retreated 0.5%, mirroring broader declines across Paris, Frankfurt, and London. Tech-heavy markets bore the brunt of the selloff; Nasdaq futures plummeted 1.7%, while S&P 500 futures shed 0.8%. Taiwan’s market experienced a brutal 6% collapse, its most significant single-day loss since the height of the U.S.-China tariff wars during the Trump administration.

Simultaneously, energy markets reacted to the regional instability in the Gulf. Renewed Iranian strikes on U.S. facilities pushed oil prices higher, resulting in robust weekly gains for both U.S. and Brent crude. Despite the surrounding volatility, the U.S. dollar maintained relative stability as tempered expectations for Federal Reserve rate hikes followed the latest domestic inflation print.