Global markets reacted negatively on July 28, 2026, as a sharp decline in semiconductor stocks spread across regions. European indices opened lower amid growing concerns over AI-related investment cycles and reports of China’s mass production of immersion DUV lithography machines. Asian markets, particularly Korea’s KOSPI, experienced significant losses, while Nasdaq futures signaled further declines in U.S. equities. The downturn reflects mounting pressure on the global chip supply chain and investor caution about the sustainability of recent tech valuations.
On the diplomatic front, President Donald Trump expressed optimism about reaching an agreement with Iran to de-escalate tensions in the Middle East, though Iranian officials denied ongoing talks. Oil prices fell amid expectations of rising supply. Meanwhile, analysts highlighted risks tied to interconnected AI investments, warning of potential corrections if spending slows. European chip equipment makers like ASML remain under pressure. Market volatility is expected to persist due to the convergence of technological shifts and geopolitical developments.