{"id":64921,"date":"2026-07-16T20:38:17","date_gmt":"2026-07-17T00:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-middle-east-tensions-flare-and-tech-selloff-deepens\/64921\/"},"modified":"2026-07-16T20:38:17","modified_gmt":"2026-07-17T00:38:17","slug":"global-markets-retreat-as-middle-east-tensions-flare-and-tech-selloff-deepens","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-middle-east-tensions-flare-and-tech-selloff-deepens\/64921\/","title":{"rendered":"Global Markets Retreat as Middle East Tensions Flare and Tech Selloff Deepens"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japan&#39;s Nikkei 225 plummeted 3.5% to 64,497.12<\/strong> in early trade, leading a broader Asian equity decline as semiconductor stocks faced a sharp selloff over AI valuation concerns.<\/li>\n<li><strong>WTI crude futures rose 0.85% to $79.62<\/strong> following U.S. military strikes in Iran and a significant drop in vessel traffic through the <strong>Strait of Hormuz<\/strong>, raising fears of a major supply disruption.<\/li>\n<li><strong>Trump Media &amp; Technology Group (<a href=\"\/stock\/DJT\">DJT<\/a>)<\/strong> announced the launch of &quot;Truth API,&quot; a paid service offering high-frequency traders <strong>millisecond-early access<\/strong> to market-moving posts from the U.S. President.<\/li>\n<li><strong>Federal Reserve Vice Chair Philip Jefferson<\/strong> signaled he is open to <strong>reconsidering the current policy stance<\/strong> if inflation does not cool soon, though he currently favors holding rates steady.<\/li>\n<li><strong>Seven &amp; i Holdings (<a href=\"\/stock\/3382\">3382<\/a>)<\/strong> confirmed it is in discussions to acquire a double-digit stake in <strong>Zabka Group<\/strong>, Poland&#39;s largest convenience store chain, in a deal potentially worth several billion dollars.<\/li>\n<\/ul>\n<h2>Asian Markets and Tech Volatility<\/h2>\n<p>Asian equities opened sharply lower on Friday, pressured by a combination of overnight losses in U.S. technology stocks and escalating geopolitical risks. The <strong>Nikkei 225 (<a href=\"\/stock\/N225\">N225<\/a>)<\/strong> saw its decline deepen to <strong>3.5%<\/strong>, while Australia&#39;s <strong>S&amp;P\/ASX 200 (<a href=\"\/stock\/XJO\">XJO<\/a>)<\/strong> slipped <strong>0.3% to 8,814.20<\/strong>. Regional sentiment was further dampened by a massive selloff in the semiconductor sector, as investors questioned whether massive AI investments would yield near-term returns.<\/p>\n<p>South Korean markets remained closed for <strong>Constitution Day<\/strong>, providing some insulation from the regional rout. However, European equity futures pointed toward a lower open, with <strong>EURO STOXX 50<\/strong> futures falling <strong>0.4%<\/strong> and <strong>DAX<\/strong> futures down <strong>0.2%<\/strong>.<\/p>\n<h2>Energy Surge Amid US-Iran Escalation<\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> continued their upward trajectory as the conflict between the U.S. and Iran intensified. U.S. Defense Secretary <strong>Pete Hegseth<\/strong> asserted that Iran does not control the <strong>Strait of Hormuz<\/strong>, following U.S. military operations targeting Iranian supply routes.<\/p>\n<p>Shipping traffic through the critical waterway has reportedly collapsed by <strong>60%<\/strong>, with only 14 vessels recorded on a single day compared to the usual 100. Analysts warn that if hostilities persist, local pump prices could see <strong>double-digit increases<\/strong> in the coming weeks.<\/p>\n<h2>Monetary Policy and Corporate Moves<\/h2>\n<p>In a speech at Stanford University, Fed Vice Chair <strong>Philip Jefferson<\/strong> maintained a data-dependent tone, noting that while the current policy is &quot;well positioned,&quot; a lack of progress on inflation could necessitate <strong>higher rates later this year<\/strong>. His remarks come as <strong>Core PCE<\/strong> remains elevated at <strong>3.4%<\/strong>, well above the central bank&#39;s 2% target.<\/p>\n<p>On the corporate front, <strong>Brookfield Corporation (<a href=\"\/stock\/BN\">BN<\/a>)<\/strong> received shareholder approval to simplify its corporate structure, a move expected to close by year-end. Meanwhile, <strong>Seven &amp; i Holdings (<a href=\"\/stock\/3382\">3382<\/a>)<\/strong> is looking to accelerate its European expansion through a massive investment in Poland&#39;s <strong>Zabka Group<\/strong>, though the company stressed that no final decision has been made.<\/p>\n<h2>Political and Legal Developments<\/h2>\n<p><strong>Trump Media &amp; Technology Group (<a href=\"\/stock\/DJT\">DJT<\/a>)<\/strong> is moving to monetize the President&#39;s social media influence by launching a <strong>Truth API<\/strong> for institutional traders on August 1. The service aims to provide verified, low-latency access to posts that frequently move global currencies, oil, and stocks.<\/p>\n<p>Separately, the <strong>U.S. Government<\/strong> is reportedly considering intervening in President Trump\u2019s <strong>$10 billion defamation lawsuit<\/strong> against the <strong>BBC<\/strong>. The broadcaster has voiced fierce opposition, citing a &quot;clear and stark&quot; conflict of interest as the President directs federal resources toward a personal civil matter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japan&#39;s Nikkei 225 plummeted 3.5% to 64,497.12 in early trade, leading a broader Asian equity decline as semiconductor 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