Global Markets Retreat Amid Chip Sell-Off and Escalating Tensions with Iran Threatening Oil Supply

Global stock indexes declined Thursday, pressured by weakness in the semiconductor sector and ongoing geopolitical concerns regarding the Strait of Hormuz. Major tech stocks, including Micron Technology, fell sharply despite strong earnings reported by the chip industry's bellwether, Taiwan Semiconductor Manufacturing Company. The downturn occurred as investors weighed the risks of high technology valuations against solid economic indicators, such as falling jobless claims. Meanwhile, rising crude oil prices, driven by escalating tensions between the United States and Iran, pushed the 10-year U.S. Treasury yield higher. Separately, the UnitedHealth Group reported better-than-expected second-quarter earnings, providing a strong counterpoint to the market dip. In Asia, South Korea's central bank raised interest rates, citing inflation. These mixed signals reflect investors grappling with high interest rate environments and supply-chain worries while monitoring the administration's foreign policy developments.

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