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Stock markets decline as Middle East tensions rise and AI slows

Stock markets decline as Middle East tensions rise and AI slows

Global stock markets are declining amid concerns over rising US interest rates, increased geopolitical tensions in the Middle East, and a cooling of the AI stock market boom. Key indices in Asia-Pacific, including South Korea’s KOSPI and Japan’s Nikkei, experienced significant drops, with South Korea’s market briefly suspending trading due to a sharp decline in chipmaker stocks. The sell-off follows a recent decline on Wall Street triggered by strong US employment data, which heightened expectations of interest rate hikes, alongside fears of escalating conflicts between Iran and Israel that threaten to disrupt energy markets further.

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