Global stock markets took a sharp hit on Monday, June 8, 2026, as a “messy mix” of geopolitical tensions and cooling enthusiasm for the artificial intelligence (AI) boom unnerved investors.
The sell-off began in Asia, where South Korea’s KOSPI index plunged nearly 9% forcing a temporary trading halt to prevent selling. Japan’s Nikkei 225 and other regional benchmarks also suffered heavy losses.
The downturn was largely driven by a massive retreat in technology stocks following a nearly 5% drop in the tech-heavy Nasdaq late last week.
Investors are increasingly questioning whether the massive spending on AI will yield real profits. Saxo Bank strategist Charu Chanana noted that while demand remains high, the “burden of proof has gone up” as investors worry that current tech assets may be overvalued.
Simultaneously, the Middle East conflict intensified as Iran and Israel exchanged direct military strikes ending a recent ceasefire.
This escalation sent Brent crude oil prices jumping nearly 5% to over $97 per barrel fueling fears of inflation.
Barclays equity analyst Emmanuel Cau summarized the market mood, stating, “You have a mix of things happening at the same time” adding that in the background, “the war in Iran is just not going away.”
