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[BUSINESS] · United States, South Korea, Japan, Germany, France · 100 sources

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Tech Stock Sell‑off Triggers Global Market Decline

Global equity markets slipped sharply as a broad sell‑off in AI‑related chip and technology stocks intensified. In the United States, the S&P 500 fell 1.44 % and the Nasdaq Composite dropped 2.2 % while the Dow Jones edged down 0.09 %. European indices also opened lower, with Germany’s DAX down about 1 % and France’s CAC 40 off 0.7 %. Asian markets were hit hard: South Korea’s KOSPI fell roughly 10 % after a prior 12 % slide, Japan’s Nikkei slipped 3‑4 %, and Samsung Electronics and SK Hynix recovered only partially. The sell‑off was driven by growing doubts over the lofty valuations of AI‑fuelled semiconductor firms such as Nvidia, Micron, Intel, AMD, Qualcomm and SanDisk, and by concerns about the high‑cost financing of AI infrastructure, highlighted by Elon Musk’s SpaceX announcing a $20 billion bond issue. The market also reacted to geopolitical developments, including U.S.–Iran talks easing oil‑price pressures, and to expectations of a more hawkish Federal Reserve stance. Volatility rose, with the VIX up nearly 20 %. Defensive sectors such as consumer staples and utilities outperformed, while memory‑chip makers posted double‑digit losses, underscoring a rapid rotation away from over‑valued tech assets.

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Asian Markets Trade Mixed [www.finanzen.ch]
3 months ago