U.S. and European stock indices are under pressure amid escalating Middle East tensions and disappointing earnings from SK Hynix, a key supplier to Nvidia. Nasdaq 100 futures are leading the declines with a 0.5% drop, while S&P 500 and Russell 2000 futures are down approximately 0.15%. The European EU50 index also reflects this sentiment, falling 0.3%. The situation has intensified concerns about the sustainability of the semiconductor boom, particularly as SK Hynix reported a staggering 557% increase in operating profit, yet still fell short of investor expectations.

Asian markets experienced a sharp sell-off, with South Korea’s KOSPI plunging up to 11% at one point, driven by fears of a hawkish Federal Reserve and rising oil prices. The tech sector was notably impacted, with SK Hynix’s stock plummeting over 9% despite record revenues, signaling potential volatility ahead for AI-related equities.

Market professionals should closely monitor these geopolitical developments and earnings reports, as they may influence trading strategies and sector allocations in the coming days. The Fed’s upcoming rate decision could further amplify market reactions, especially in the tech and energy sectors.

Source: xtb.com