Global equity markets fell sharply on Monday, June 8, 2026, as investors reacted to a combination of rising geopolitical risk and renewed doubts over the sustainability of the artificial intelligence-driven stock rally.
The sell-off began in Asia, where South Korea’s KOSPI index plunged nearly 9%, triggering a temporary trading halt designed to curb panic selling. Japan’s Nikkei 225 and other regional benchmarks also posted steep declines, reflecting broad-based risk aversion across the region.
Technology shares were at the center of the downturn after a nearly 5% drop in the Nasdaq late last week reignited concerns that the sector’s rapid gains may have outpaced underlying earnings growth. Market sentiment has shifted as investors increasingly question whether heavy capital spending on AI infrastructure will translate into near-term profitability.
Saxo Bank strategist Charu Chanana said that while demand for AI remains strong, investors are now demanding clearer financial returns, noting that the “burden of proof has gone up” amid fears of overvaluation in parts of the tech sector.
At the same time, geopolitical tensions in the Middle East added further pressure to already fragile markets. Iran and Israel exchanged direct military strikes following the collapse of a recent ceasefire, heightening fears of a broader regional escalation.
The renewed conflict pushed Brent crude oil prices up nearly 5%, briefly surpassing $97 per barrel, raising fresh concerns about inflationary pressures at a time when global growth is already uncertain.
Barclays equity strategist Emmanuel Cau summed up investor sentiment, saying markets are facing “a mix of things happening at the same time,” while warning that the ongoing conflict involving Iran continues to weigh heavily on global risk appetite.
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