Semiconductor stocks drive tech rout as Middle East fuels chip crisis, inflation fears

The semiconductor industry is currently navigating dual challenges: a significant drop in global smartphone demand and elevated geopolitical instability. On Tuesday, the broader technology sector, including chip equipment manufacturers, experienced a considerable market decline. The Nasdaq Composite fell more than 2%, primarily driven by escalating Middle East tensions that pushed oil prices higher. Brent crude surged past $84 per barrel following reports regarding the Strait of Hormuz, intensifying concerns about inflation and the potential for increased interest rates, which typically pressure high-valuation technology stocks.

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