Middle East tensions are spilling over into global markets, hitting Taiwan's stock market hard and dragging down tech giants like Delta Electronics — bad news for investors but a possible opening for bargain hunters.

• Fighting in the Middle East is disrupting oil tankers and pipelines, pushing up fears of higher oil prices and feeding U.S. inflation and interest rate worries; this has shaken U.S. tech stocks and spread to Taiwan.
• Taiwan's stock market fell over 1,000 points in a week and broke below a key support level, with big names like TSMC and Delta Electronics getting hit hardest; Delta Electronics alone is down nearly 40% from its high this year.
• Foreign investors pulled a record amount of money out of Taiwan stocks before the drop, adding to the selling pressure.
• Despite the selloff, some analysts remain bullish, keeping a "buy" rating on TSMC with a big upside price target, citing strong AI chip demand and new factory capacity coming online in 2027-2028.
• U.S. midterm elections are adding uncertainty — if Democrats take Congress, it could slow AI data center spending that Taiwan's tech sector depends on, though experts say corporate earnings and AI demand will matter more long-term.

Outlook: Markets stay choppy this week as Taiwan tech companies report earnings and the Fed makes its rate decision, with some analysts still expecting Taiwan stocks to recover and push toward new highs this year.