Asian markets slump as A.I. infrastructure costs soar

• Asian markets are in a steep sell-off, with Japanese stocks down 4.5% and South Korean markets down over 6%.
• Apple and Microsoft's price hikes and the AI race's impact on chip supplies are raising fears of higher inflation.
• The Federal Reserve's core PCE inflation hit 3.4%, reinforcing a hawkish stance with expectations of further rate hikes.
• Geopolitical tensions in the Strait of Hormuz, including a cargo ship attack, are causing uncertainty in oil transit.

European and Asian equity markets are experiencing a downturn, fueled by concerns over rising AI infrastructure costs leading to price hikes from tech giants like Apple and Microsoft, and persistent inflation pressures. Geopolitical tensions in the Strait of Hormuz further contribute to market uncertainty, with the Federal Reserve maintaining a hawkish stance.