Stock market jitters persist as tech tumbles, oil swings

Stock market jitters gripped Asian trading floors Tuesday as a punishing tech sell-off deepened and oil prices whipsawed on fresh hostilities between Iran and Israel, leaving investors scrambling to hedge against mounting uncertainty.

Tokyo’s Nikkei 225 plunged 2.8% while Hong Kong’s Hang Seng dropped 3.1% by midday trading. South Korea’s KOSPI wasn’t spared either, sliding 2.4% as semiconductor giants bore the brunt of the exodus from technology shares.

Tech Giants Take Another Hit

The sell-off that started on Wall Street last week shows no signs of letting up. Chip makers led the decline, with Taiwan Semiconductor Manufacturing Company shedding 4.2% in Taipei trading. Samsung Electronics fell 3.7% in Seoul, while Tokyo Electron dropped 5.1%.

Analysts point to growing concerns about overvaluation in the artificial intelligence sector and weakening demand forecasts. But there’s also fear that rising geopolitical tensions could disrupt the fragile global supply chains that tech companies depend on.

“We’re seeing a perfect storm of technical factors and genuine macroeconomic concerns,” said one senior market strategist at a Tokyo-based investment firm. “The AI euphoria that carried markets higher is colliding with geopolitical reality.”

Oil Volatility Spikes on Middle East Attacks

Crude prices jumped as much as 6% overnight before paring gains to trade just 2.3% higher at $87.40 per barrel for Brent crude. The wild swings came after Iran launched drone strikes targeting Israeli infrastructure, prompting swift retaliation from Israel’s air force.

West Texas Intermediate gained 2.1% to $83.15.

Energy traders are now pricing in significant risk premiums, worried that escalation could threaten shipping lanes through the Strait of Hormuz. That narrow waterway handles roughly one-fifth of global oil traffic on any given day.

Flight to Safety Accelerates

Gold surged to $2,387 per ounce, just shy of last month’s record high. The Japanese yen strengthened to 143.2 against the dollar as investors fled to traditional safe havens. U.S. Treasury yields dipped, with the 10-year note falling to 4.31%.

So far, the damage hasn’t spread to European futures, which showed modest losses of around 0.8% ahead of the open. Still, traders aren’t exactly breathing easy. Currency desks reported unusually heavy volume in defensive positioning, suggesting professionals are preparing for more volatility ahead.

The coming days will test whether this represents a temporary correction or something more serious. With earnings season approaching and geopolitical risks refusing to fade, investors won’t find easy answers anytime soon.