A severe selloff in technology stocks, driven by concerns over inflated valuations, escalating capital expenditures on artificial intelligence, and fears that rapid AI advances could disrupt traditional software business models, rippled from Wall Street into Asian markets on Thursday.
Key indices suffered sharp declines, with South Korea’s Kospi Index — heavily tied to AI-related investments — dropping around 3–4%, while MSCI’s Asian tech gauge fell for the fifth time in six sessions.
Major losers included Samsung Electronics and SoftBank Group, and the rout extended to Hong Kong’s Hang Seng Tech Index, which neared bear market territory after six consecutive sessions of losses.
In the US, the Nasdaq 100 experienced its worst two-day decline since October, breaching its 100-day moving average, as software and chipmaker stocks led the selling. The “Magnificent Seven” group fell about 1.8%, and broader rotation shifted capital toward defensive sectors.
Compounding the risk-off sentiment, precious metals faced intense pressure amid the broader market turmoil, with silver plunging as much as 17% in a volatile session that erased recent recoveries from a historic rout, and gold dropping up to 3.5%. Bitcoin also extended losses, briefly approaching $70,000.
European markets were poised for opening losses ahead of key central bank decisions, while currencies like the pound and euro weakened slightly against a firmer US dollar.
UK monetary policy and US JOLTS job openings will be the main releases today.
