New Front in Chip Crisis: Middle East Tensions Impacting Markets

Escalating tensions in the Middle East prompted cautious market sentiment as investors awaited the latest US inflation report. Middle Eastern bourses dropped by %0.2, while Nijeria and Egypt stocks fell by %1.5 amid US military threats. Nvidia and AMD saw increased demand for ASML machines, but TSMC's reliance on China's production capacity raised concerns due to US delays in rare earth supply. EM ETFs declined by %0.8 as investors awaited Fed policy signals.

China's dependency on the chip supply chain, combined with the US's strategic reserve buildup, dampened Nvidia's %3.2 rise. ASML machine demand surged by %15, though China's development of SMIC-style solutions mitigated the US's long-term impact.