Global Interest Rate Hikes Send Stocks Plummeting Amid Middle East Tensions

The Tokyo stock market is expected to decline on the 19th due to uncertainty surrounding the Middle East situation and rising global government bond yields. Long-term interest rates have risen notably in the U.S., Japan, and Europe, with the yield on 30-year U.S. Treasuries briefly reaching 5.338%, its highest level since June 2007.

U.S. stocks fell for the third consecutive session on the 18th due to concerns over inflation and deteriorating fiscal conditions. Pharmaceutical and energy stocks rose, while semiconductors and semiconductor manufacturing equipment stocks fell. The SOX Index dropped nearly 5% as selling was prominent in growth stocks related to semiconductors and AI infrastructure.

Meta Platforms (META.US) is facing a trial with potential payouts up to $1.4 trillion after being accused of intentionally targeting children's social media addiction for profit. The company denied the allegations, stating that fines could reach this figure, close to its market capitalization.