Global equity markets tumble amid tech sell‑off and AI‑debt concerns

World stock exchanges recorded sharp declines on Tuesday, with Asian markets leading the slide. South Korea's KOSPI fell about 10% amid heightened volatility, Japan's Nikkei dropped 3.5%, while China's Shanghai and Shenzhen indexes lost 1.4% and over 3% respectively. Hong Kong added to the downturn with a 1.8% loss.

In the United States, the Nasdaq and S&P 500 posted their biggest weekly falls, driven by steep drops in semiconductor makers such as Micron Technology (down 12%) and SanDisk (down 13%). The Philadelphia Semiconductor Index slumped 7.3%, and the broader S&P 500 technology sector lost 3.2%. Analysts pointed to doubts over debt‑financed AI spending by cloud‑service firms as a key factor.

European markets followed the negative trend, with London closing modestly up, but Frankfurt and Paris sliding 0.8% and 0.7% respectively. Italy's FTSE MIB fell 1.46%, with notable losses at STMicroelectronics, Stellantis, Prysmian and Avio.