Global stocks tumble: Tech shares plunge amid Middle East conflict

Global stock markets suffered steep losses on June 8, 2026, as investors reacted to a combination of geopolitical unrest and skepticism about artificial intelligence (AI) sector valuations. Trading in South Korea’s KOSPI index fell nearly 9%, triggering a temporary halt to curb selling, while Japan’s Nikkei 225 and other regional markets also declined sharply. The downturn was primarily driven by a retreat in technology stocks, following a nearly 5% drop in the Nasdaq over the prior week, as concerns grew over whether AI-related spending would deliver sustainable profits. Analysts noted that while demand for AI remains strong, investors are increasingly demanding proof of profitability, raising questions about overvaluation in tech assets. Meanwhile, tensions in the Middle East escalated as Iran and Israel resumed direct military strikes, ending a fragile ceasefire. The conflict sent Brent crude oil prices surging nearly 5% to over $97 per barrel, heightening fears of inflation and prolonged market volatility. Barclays equity analyst Emmanuel Cau described the situation as a confluence of factors, emphasizing that the Iran-Israel conflict remains unresolved. The broader market mood reflected unease over both geopolitical risks and the uncertain outlook for high-growth tech sectors. As trading resumed, investors monitored developments closely, with analysts warning that the combination of geopolitical instability and valuation concerns could weigh on markets in the near term.