Tech Tumbles: U.S.-China Tensions Rattle Global Markets

European and global markets faced a sell-off after the U.S. considered tighter controls on chip exports to China. Comments by Donald Trump on Taiwan intensified concerns, leading to a significant drop in tech stocks. Investors are now looking at earnings reports and central bank meetings for further direction.

European and global markets experienced significant sell-offs following reports that the U.S. is considering stricter restrictions on chip exports to China. This development, coupled with controversial comments by Donald Trump regarding Taiwan, has heightened geopolitical stress within the technology sector.

The negative sentiment is expected to continue during European trading hours. The technology index for the pan-European STOXX 600, which saw its largest one-day percentage drop since December 2022, will be a focal point, primarily pulled down by ASML.

Recent reports indicate that Washington may employ severe trade measures if companies persist in providing China with advanced semiconductor technology. Additionally, Trump's suggestion that Taiwan should compensate the U.S. for its defense has contributed to a market dive, erasing over $500 billion in chip stock value.

(With inputs from agencies.)