Nasdaq declines nearly 390 pts as tech selloff continues

US stocks declined due to a selloff in technology shares led by chipmakers, amid ongoing military escalation between the US and Iran, set to conclude on July 16.

By the end of Thursday's trading session, the Dow Jones Industrial Average fell 0.2%, losing 105 points to close at 52,552 points.

The S&P 500 dropped by 0.51%, losing 38 points to close at 7,533 points, while the Nasdaq Composite fell 1.47%, or 387 points, ending at 25,881 points.

The Stoxx Europe 600 index rose 0.16% to 643 points.

The UK's FTSE 100 gained 0.54%, closing at 10,572 points, while Germany's DAX added 0.34%, ending the session at 24,915 points. France's CAC 40 closed flat at 8,377 points.

In Japan, the Nikkei 225 fell 2.8% to 66,835 points, while the broader Topix index declined by 1.45%, reaching 4,028 points.

In the oil market, Brent crude futures for September delivery fell 0.85%, or 72 cents, to $84.23 per barrel.

Futures for US WTI crude (Nymex) August delivery declined 0.82%, or 65 cents, to $78.95 per barrel.

Gold futures for August delivery fell 1.47%, corresponding to $59.70, reaching $3,992.10 per ounce.

What drove the markets? Chip stocks came under pressure amid concerns over the massive AI investments by major technology companies, while the US continued its strikes on Iran and reports emerged that Tehran was seeking to close Bab el-Mandeb Strait.