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AAP
AAP
Business
Lawrence White

Stocks drop as US-Iran talks stall and AI rally cools

United States Asia Iran MSCI Japan Broadcom

Shares have slid as investors turned defensive, wary of the flare-up in Middle East hostilities with US-Iran peace talks in limbo.

The Iran-backed ‌Hezbollah militia rejected a new ceasefire in Lebanon on Thursday and Israel said it would not withdraw troops from the country, undermining US President Donald Trump's efforts to halt ‌fighting there and reach a peace deal with Tehran.

Meanwhile, an AI-driven sell-off after chipmaker Broadcom reported underwhelming results on Wednesday continued into a second day as investors took profits following a blistering recent rally.

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