Stock market jitters remain amid tech fears and renewed Middle East attacks

In Asia, South Korea’s stock market was forced to halt trading for 20 minutes, with its Kospi index shedding nearly 9% within minutes of opening.
It eventually closed 8.3% lower, with Japan’s Nikkei index falling 3.9% and European markets also trading lower, though suffering much smaller falls than those seen in Asia.
In the US, the tech-heavy Nasdaq index closed up 0.9% while the S&P 500 ended the day 0.3% higher.
All had suffered steep drops on Friday following a strong US jobs report, which raised the prospect of interest rates staying high, or even climbing further this year.
On Monday, markets were also rattled by a rise in oil prices, fuelling concerns of inflation, after Iran and Israel exchanged strikes for the first time since a ceasefire was agreed between the sides and the US in April.
Traders are nervously watching a “messy mix” of several shocks to the market mainly tied to the tech sector and accelerated by rising energy prices, said chief investment strategist Charu Chanana from Saxo.
Tech stocks have seen a strong run in recent weeks, but investors are “repositioning” over fears the investments into artificial intelligence may be overvalued, she said.
Markets like the Kospi and Nikkei are particularly exposed to such shocks given their exchanges are dominated by tech stocks.
The Kospi’s halt on Monday was part of a circuit breaker mechanism designed to prevent panic trading and was triggered for the third time this year following the plunge in tech stocks.
Wall Street’s sharp drop on Friday saw the sell-off in tech stocks wipe about 4% off the Nasdaq – its biggest drop in more than a year.
Part of the decline on Friday followed fears of a hike in US interest rates, due to a lower-than-expected US unemployment rate in April as well as persistently high inflation linked to the war in the Middle East.