Asian and European stock markets sank Tuesday after Israel's army chief vowed a response to Iran's attack on his country, with sentiment also dented by diminishing U.S. interest-rate cut hopes and mixed earnings.

After reporting dismal first-quarter sales, Tesla is planning to lay off about a tenth of its workforce as it tries to cut costs, multiple media outlets reported Monday.

CEO Elon Musk detailed the plans in a memo sent to employees. The layoffs could affect about 14,000 of the 140,473 workers employed by the Austin, Texas, company at the end of last year.

Apple CEO Tim Cook said Tuesday that he wants to further increase investment in Vietnam a day after the company announced it would spending on suppliers in the Southeast Asian manufacturing hub.

Vietnam has become more important to Apple as the company seeks to diversify its supply chains away from China, where most of its smartphones and tablets are assembled.

China's economy grew faster than expected in the first quarter of the year with help from policies and stronger demand, though signs of weakness in the troubled housing market persisted.

The world's second-largest economy expanded at a 5.3% annual pace in January-March, beating analysts' forecasts of about 4.8%, data released Tuesday showed. Compared to the previous quarter, the economy grew 1.6%.

The Biden administration has reached an agreement to provide up to $6.4 billion in direct funding for Samsung Electronics to develop a computer chip manufacturing and research cluster in Texas.

The funding announced Monday by the Commerce Department is part of a total investment in the cluster that, with private money, is expected to exceed $40 billion. The government support comes from the CHIPS and Science Act, which President Joe Biden signed into law in 2022 with the goal of reviving the production of advanced computer chips domestically.

German Chancellor Olaf Scholz called for fair competition in trade relations with China while warning about dumping and overproduction as he spoke to students in Shanghai on Monday.

Scholz is visiting China against the background of looming EU tariffs on Chinese-made electric vehicles and other trade-related tensions. The two countries are also split over how to handle Russia's invasion of Ukraine.

Asian stocks pulled back while European markets opened higher on Monday as worries about potentially escalating tensions in the Middle East rattled financial markets, pushing investors to look for safer places for their money.

The future for the S&P 500 gained 0.5%, and that for the Dow Jones Industrial Average was 0.4% higher.

U.S. Treasury Secretary Janet Yellen and her team are leaving China and returning to Washington after trying to tackle the major questions of the day between the countries. Here's a look at what she tried to accomplish, what was achieved, and where things stand for the world's two largest economies:

UNFAIR TRADE PRACTICES

European equities dipped in early trading Tuesday while Asian stocks closed mostly higher, as investors mainly focused on a U.S. inflation report and what it means for interest rate cuts by the Federal Reserve.

Oil prices advanced.

BELGRADE, Serbia (AP) — Serbia is close to signing a deal on the purchase of 12 French Rafale multi-purpose fighter jets, the Serbian president announced Tuesday, in what would mark a shift from its traditional military supplier Russia.

President Aleksandar Vucic spoke during his two-day visit to Paris and talks with French President Emmanuel Macron as well as French defense officials including Rafale manufacturer Dassault Aviation.