Geopolitical Tensions and Chip Sell‑Off Shake Global Markets

Global markets are being jolted by rising geopolitical tensions in the Middle East and an abrupt sell‑off in the chip sector.

Escalating Middle East Tensions Ripple Through Markets

Renewed geopolitical risk has pushed Brent crude up 0.1%, reaching $84.1 per barrel. Restrictions on Strait of Hormuz transits are cementing expectations of sustained higher energy costs.

Chip Giants Post Strong Earnings Yet Stocks Plunge

Semiconductor titans reported robust quarterly profits but saw sharp equity declines:

■TSMC: Earnings up 77.4%, stock down 2.3%

■Intel: Stock down 5.8%

■Micron Technology: Stock down 5.7%

■AMD: Stock down 5.3%

■Broadcom: Stock down 5.0%

■Alphabet: Stock down 4.4% (delay of Gemini 3.5 Pro)

Fed Signals Tightening: Inflation and Policy Cues

Dallas Fed President Lorie Logan warned that without inflation retreating to 2%, a policy tightening will be required. Kansas City Fed President Jeff Schmid reiterated that inflation remains above target. Meanwhile, U.S. retail sales rose 0.2%, and initial unemployment claims fell to 208,000.

Energy and Commodity Market Updates

■Dollar Index: Up 0.1% at 100.8

■Gold: Spot around $3,980, staying below the $4,000 threshold

■Oil: Continuing its upward trajectory, poised for the fastest weekly gain in the last three months.

Asian Exchanges Feel the Chain Reaction

Japan's Nikkei 225 slipped 6.4%, while China's Shanghai Composite fell 1.6% and Hong Kong's Hang Seng dropped 2.0%. Heavy reliance on the chip sector left Asian markets vulnerable to the ongoing sell‑off.

Markets are reassessing risk appetite amid the confluence of geopolitical uncertainty and semiconductor volatility. The Fed's tightening signals suggest that if inflationary pressures persist, interest rates may remain elevated for an extended period. In this environment, cautious positioning in currencies and commodities is essential for portfolio diversification. Higher energy prices could further amplify inflationary stress, potentially extending central banks' policy tightening timelines. (Dr. Aslıhan Demir)