Finance

Semiconductor stocks suffered another steep leg down, extending a multi-day decline that triggered a temporary trading halt in South Korea's Kospi index overnight. Market participants are increasingly expressing concern over the immense capital expenditures required for artificial intelligence and whether the near-term financial returns will justify the spending. Heavyweights such as Micron and AMD fell over 8%, pulling the broader semiconductor sector down significantly.

A series of positive corporate earnings results provided a strong backstop for the broader equities market. Sherwin-Williams witnessed an 8% surge following an impressive second-quarter report, while Coca-Cola advanced 5% after exceeding top- and bottom-line estimates and lifting its full-year guidance. These robust reports helped reassure investors that consumer spending and corporate profitability remain resilient.

Crude oil benchmarks experienced a sharp decline, with West Texas Intermediate futures settling near $79 per barrel and Brent crude shedding nearly 5%. The aggressive selloff follows statements indicating the United States and Iran are actively engaged in diplomatic discussions regarding the safety of shipping lanes in the Strait of Hormuz. The cooling energy prices simultaneously helped ease long-term U.S. Treasury yields.