One day... two massive shocks struck millions of people around the world Millions drowned...
Suspense Crime, Digital Desk : Friday morning... the world hadn't fully woken up yet. But the stock market screens were already red. First Tokyo trembled, then Seoul. Soon, Hong Kong and China also fell. Meanwhile, in the US, futures were already showing red even before the markets opened. Investors were still trying to process one setback when another news arrived... reports of losses of up to ₹30 lakh crore in these losses.
First...
selling in technology companies.
Second...
the continued weakness in the oil market. Together, these two factors raised the pulse of global investors.
The first blow... the rising cost of AI . For the past two years, the only topic of discussion around the world was artificial intelligence . Every company wanted to be ahead in the AI race. Some built billion-dollar data centers, some installed thousands of AI servers, and some purchased new chips... But now the true cost of this race is beginning to emerge. The more powerful the machines needed to run AI... the more expensive the memory, the more storage, the greater the expense. And now these rising costs are weighing heavily on the entire tech industry.
Panic erupted in South Korea . The Kospi index plunged by more than 8%. The situation became so dire that the exchange had to halt trading for nearly 20 minutes. Samsung, SK Hynix, and other tech companies saw heavy selling. Investors began withdrawing money rapidly.
Japan was also spared. Japan's Nikkei index also suffered a sharp decline. SoftBank was the most pressured. In fact, there were already concerns in the market that OpenAI might postpone its large IPO. SoftBank is a major investor in OpenAI. Consequently, this news further increased investor anxiety.
The real blow came from the US. If anyone thought this was a story exclusive to Asia, they were wrong. This entire decline originated in the US. A day earlier, Apple announced a price hike for MacBooks and iPads. The company stated that the cost of memory and storage was rising rapidly. Due to AI, essential components had become so expensive that customers would now be charged for these costs. Hearing this , investors began selling Apple shares. The company fell nearly 6% in a single day.
Then Microsoft also dealt a blow. A few hours after Apple's announcement, Microsoft also made a major decision. The company announced that it would also be raising the prices of its Xbox gaming consoles. The reasons were the same: expensive components, expensive supplies, and rising costs. The company said that prices were raised last year as well. It was hoped that this would not have to be done again. However, despite months of negotiations with suppliers, costs increased so much that it became necessary to increase prices. The new prices will be effective from August 1. Some models will be costlier by up to $100, while the price of some will increase by up to $150.
Investors did not spare other tech companies either. Microsoft shares fell by more than 3 percent. Alphabet also closed in the red. Meta Platforms also fell. US futures started giving clear indications that Wall Street may also have a weak start.
Second blow... from the oil market
Meanwhile, while all eyes were on tech stocks, the commodity market also became volatile. Brent and other major crude oil benchmarks continued to fall. The most surprising thing was that this decline occurred when another ship was attacked in the Strait of Hormuz, the
region that supplies much of the world's oil. According to reports, a Singapore-flagged cargo ship was attacked off the coast of Oman.
However, it's a matter of relief that there was no loss of life or damage to the environment. Despite this, oil prices did not rise. The reason
for the fall in oil prices
is believed to be the recent peace agreement between the US and Iran. Following this agreement, the market hopes that oil supplies through the Strait of Hormuz will remain normal. For now, investors are assuming that there is no major threat to global supply.
A new challenge for OPEC
But the story of the oil market does not end there. OPEC also appears to be facing a new challenge. The United Arab Emirates left the organization some time ago. Now, there are reports that Iraq is also demanding higher production quotas. If its demands are not met, it may also consider leaving.
If this happens, it would be a major blow to the world's most influential oil-producing group.
Politics and weather are also in the news.
Speculation is rife about the formation of a new government in Britain. Markets are closely monitoring political developments regarding new economic policies.
Meanwhile, Europe is also grappling with intense heat. For the second consecutive day, a heat dome-like situation has developed. Britain recorded its hottest June day ever. France experienced record heat for the second consecutive day.
Companies involved in air conditioning and building efficiency benefited from this, with their shares rising.
What are the global markets saying
If we look at the entire day's events together, the picture becomes clear.
The first message:
AI is definitely the future, but its costs are rising rapidly.
The second message:
Companies are now passing on these increased costs to customers.
The third message:
Investors now want not just growth, but also profits.
And the fourth message...
The world economy will no longer be determined solely by interest rates, but also by AI, energy, geopolitics, and supply chains.
Friday wasn't just a day of market decline. It was a new story of the changing world economy. On the one hand, AI increased the costs of tech companies. On the other hand, the oil market showed that, despite geopolitical tensions, investors are no longer reacting as before. This means the world is changing, and with it, the rules of the stock market are changing. This is no longer just a story of earnings. It has become a story of costs, technology, energy, and trust. And right now, it seems that the next chapter of this story is yet to come.
