US inflation surge triggers global tech sell-off and market volatility

Global financial markets are facing significant pressure following unexpected US inflation data. The US Consumer Price Index rose 3.7 percent in September, fueling expectations that the Federal Reserve may implement further interest rate hikes. This has led to a sharp sell-off in technology stocks, which are particularly vulnerable to rising borrowing costs due to their heavy investments in artificial intelligence.

The volatility has extended to Asian markets, with significant losses reported in Seoul and Tokyo, particularly among chip manufacturers. In Indonesia, the financial markets also weakened; the Jakarta Composite Index (IHSG) dropped 1.33 percent to 5,863.78, and the Rupiah weakened against the US Dollar. Sectoral declines in Indonesia were led by infrastructure, energy, and industrial sectors.