Tech Stocks Tumble as Iran-Israel Strikes Renew Rate Fears

Investors absorbed sharp losses Monday after renewed missile exchanges between Iran and Israel collided with stronger-than-expected U.S. jobs data, raising the prospect of delayed Federal Reserve rate cuts and exposing stretched valuations in artificial-intelligence shares.

The immediate trigger was Friday’s U.S. session, when the Nasdaq Composite fell 4.18 percent—its largest single-day decline since April 2025—after May non-farm payrolls beat forecasts. That sell-off spilled into Asia on Monday. South Korea’s KOSPI closed down 8.29 percent at 7,484.41 after briefly triggering the exchange’s circuit breaker; Samsung Electronics dropped 10.18 percent and SK Hynix fell 7.68 percent. Japan’s Nikkei 225 lost 3.85 percent to 64,024.6, Taiwan’s TAIEX declined 3.5 percent, and Hong Kong’s Hang Seng slipped 1.37 percent.

Oil prices rose on the geopolitical news before easing. Brent crude climbed as much as 4 percent toward $97 a barrel, while West Texas Intermediate briefly exceeded $92. Prices later retreated after President Trump stated that Israel and Iran “are looking to do an immediate ceasefire” and that final negotiations were under way. Iran’s Fars news agency reported that its armed forces had ended operations against Israel.

U.S. futures pointed to a partial rebound. Nasdaq 100 contracts rose 1.2 percent in early trading, S&P 500 futures gained 0.6 percent, and Dow futures added roughly 100 points. Micron Technology shares climbed more than 5 percent in premarket action after falling 13 percent on Friday; Nvidia and Broadcom also traded higher. Analysts at Goldman Sachs pushed their expected timing for the next two rate cuts to 2027, citing the resilient labor market.

Foreign investors sold a net 1.24 trillion won of Korean shares in the morning session, while domestic retail buyers absorbed 1.76 trillion won. The Korean won recovered from an opening rate of 1,555.2 to the dollar—the weakest since March 2009—after financial authorities signaled intervention. Treasury yields rose, with the five-year note adding seven basis points to 4.19 percent.

Next week’s data releases will test whether higher energy prices are feeding into broader inflation. The Consumer Price Index for May is due Wednesday, followed by the Producer Price Index on Thursday and Oracle earnings. SpaceX is also expected to complete what could be the largest initial public offering on record.