World Stock Markets Slip as Tech Stocks Take a Hit

Stock markets around the world fell on Friday, June 26, as investors sold off technology and computer chip stocks. The selling caused major indexes in the United States, Europe, and Asia to lose ground for the week. At the same time, oil prices dropped sharply after more oil tankers began moving safely through an important waterway in the Middle East.

On Wall Street, the three main U.S. stock indexes actually finished slightly higher on Friday. Gains in health care and consumer stocks helped make up for losses in tech and energy. Still, the S&P 500 and the Nasdaq were headed for a losing week overall, while the Dow Jones Industrial Average was on track for a small weekly gain.

Chip stocks — companies that make the tiny computer parts that power phones, computers, and AI systems — had a rough week. They dropped about 4.5 percent on Friday alone and were set to fall 7 percent for the whole week. That would be their worst weekly drop since March.

A market expert named Mark Hackett explained what was happening. 'It's a combination of a needed and healthy period of consolidation following the historic run since March and a dramatic rotation from tech and everything else,' he said. He also said he believes markets will bounce back once this calm period ends, because investors are still willing to buy stocks when prices dip and the overall economy looks strong.

One reason tech stocks struggled is that Apple announced price hikes on some of its products. This worried investors because it could be a sign of structural inflation — meaning prices could stay high for a long time. The high cost of building AI technology and the limited supply of key computer parts added to those worries.

Markets outside the U.S. also had a tough time. European stocks fell nearly 0.9 percent, with tech stocks in Europe dropping even more. In Asia, South Korea's stock market fell as much as 5.8 percent, and a broad index of Asian stocks outside Japan dropped nearly 3 percent.

Oil prices took a big hit on Friday. Crude oil fell more than 4 percent after supply worries eased. More oil tankers were able to pass safely through the Strait of Hormuz, a narrow and important waterway between Iran and the Arabian Peninsula. Saudi Arabia's oil giant, Saudi Aramco, also restarted oil loading at one of its major terminals after a nearly four-month pause.

In the currency market, Japan's yen fell to its weakest level against the U.S. dollar in 40 years. The euro also lost some value against the dollar over the week. Meanwhile, gold — which investors often buy when they are nervous — rose 1.5 percent to $4,086.29 per ounce.