Rising yields and oil prices fuel stagflation concerns, pushing semiconductor-heavy indices to sharp declines across US, Europe, and Asia.
Global equities fell sharply as rising bond yields and higher oil prices reinforced stagflation fears, pressuring risk assets. The S&P 500 dropped 0.69% for a third straight session, led by a 4.98% plunge in the Philadelphia semiconductor index, its worst day of August. The NASDAQ underperformed with a 1.33% decline, while Meta shares fell 4.42%, dragging the Mag-7 lower by 0.88%.
In Europe, the STOXX 600 recorded its fifth consecutive loss, its longest losing streak in 2026, with the DAX and CAC 40 both down over 0.8%. Asian markets mirrored the weakness, with South Korea’s KOSPI tumbling 5.44%, while the Nikkei and CSI 300 fell 2.85% and 2.41%, respectively. Futures signaled further declines for US and European stocks.
The selloff reflected broad-based weakness, with the equal-weighted S&P 500 down 0.45%, as investors grappled with persistent inflationary pressures and slowing growth outlooks.