Global stock markets fell Monday as investors reassess valuations of major tech firms driving the AI boom. Oil prices surged following renewed Middle East conflict between Iran and Israel.
Asian and European exchanges posted declines following a sharp selloff in US tech stocks last week. Investors are questioning the growth prospects and valuations of technology companies at the center of artificial intelligence enthusiasm.
The market weakness reflects broader concerns about whether current AI valuations can be justified by future earnings. Tech stocks have rallied significantly this year on AI optimism, leaving them vulnerable to profit-taking and reassessment.
Separately, crude oil prices jumped after Iran and Israel exchanged strikes over the weekend. The escalation in Middle East tensions raised concerns about potential disruptions to shipping through the Strait of Hormuz, a critical chokepoint for global energy supplies.
The dual headwinds—tech stock concerns and geopolitical risk—created a cautious market environment. Energy stocks gained on higher oil prices, but the broader market weakness reflected investor uncertainty about both the tech sector's near-term trajectory and regional stability.
Monday.com plans to eliminate approximately 600 employees—20% of its workforce—in the second half of 2026. The enterprise software company cited the need to support a leaner operational model.
Tencent Holdings fell its most in over a year as investors reassess the company's mobile gaming prospects. The decline triggered a broader selloff across Chinese gaming stocks.
Internal emails revealed in court filings show Amazon used aggressive practices that pushed competitors like Walmart and Target to raise prices. Amazon denies price-fixing allegations and maintains it works to lower consumer costs.
While Canada and the EU welcomed Chinese electric vehicles in 2024, the United States maintained protective tariffs, diverging sharply from global trade trends.