NEW YORK — Global equity markets fell on Friday as semiconductor shares extended losses and investors reduced exposure to risk assets amid heightened concerns over the conflict involving Iran, with technology stocks leading declines across major indexes.
The technology-heavy Nasdaq came under the greatest pressure, while the S&P 500 also traded lower as chipmakers continued to retreat despite recent strong earnings from some industry leaders. The Philadelphia Semiconductor Index remained under heavy selling pressure after dropping more than 4% in the previous session, according to market data.
Investors pointed to a combination of elevated valuations in artificial intelligence-related stocks and renewed geopolitical uncertainty in the Middle East as factors weighing on sentiment. Recent military exchanges involving the United States and Iran have renewed concerns about potential disruptions to regional energy supplies, although oil prices were volatile rather than moving uniformly higher.
Chip stocks across Asia also weakened, contributing to broader regional market declines. South Korea's benchmark KOSPI was among the worst-performing major indexes as heavyweight semiconductor companies came under pressure, while Japan's Nikkei also posted losses.
Analysts said investors were reassessing expectations for AI-linked companies after months of strong gains, even as corporate earnings in parts of the semiconductor sector remained robust. Economic data from the United States continued to indicate resilient consumer spending and labor market conditions, leaving expectations for monetary policy largely unchanged.
Trading remained volatile at the time of publication, with investors continuing to monitor developments in the Iran conflict and their potential implications for global markets. Further market moves are likely to depend on confirmed geopolitical developments and upcoming corporate earnings releases.
