Global stocks slide as trillion-dollar tech sell-off deepens, AI fears unsettle many

Dubai: A sharp sell-off in AI-linked technology stocks erased more than $1 trillion in market value this week, spilling beyond Big Tech and dragging down global equities and credit markets in the most severe AI-driven rout since the technology entered the mainstream.

Global stock markets fell on Thursday as investors sold technology shares and reassessed valuations after years of strong gains. US equities declined for another day as investors moved into a risk-off stance, unwinding crowded trades in technology stocks and bitcoin. The S&P 500 fell 0.6%, the Nasdaq dropped 0.7%, and the Dow Jones lost 244 points, or 0.5%.

Selling pressure spread across Asia early in the session, with South Korea leading regional losses. The Kospi slumped nearly 4%, dragged down by sharp declines in heavyweight chipmakers. Samsung Electronics fell 5.9%, while SK Hynix plunged 6.7%. Concerns over elevated tech valuations prompted broad risk reduction, with investors cutting exposure to sectors that had powered gains over the past year.

Japan’s Nikkei 225 fell 0.9% to 53,818.04. Taiwan’s Taiex declined 1.5%. Australia’s S&P/ASX 200 eased 0.4% to 8,889.20. China’s Shanghai Composite slipped 0.6% to 4,075.92. Hong Kong’s Hang Seng recovered from early losses to close 0.1% higher at 26,885.24.

Indian equities also ended lower. The Sensex fell 503.76 points, or 0.60%, to 83,313.93, while the Nifty declined 0.52% to 25,642.80. Analysts attributed the Indian market pullback to profit booking following recent gains after the India–US trade deal announcement.

European markets showed comparatively limited movement. Germany’s DAX edged down 0.2% to 24,568.67. France’s CAC 40 rose 0.2% to 8,278.99. Britain’s FTSE 100 fell 0.3% to 10,371.83. US equity futures were mixed, with S&P 500 futures up 0.2% and Dow Jones Industrial Average futures down 0.1%.

Wall Street closed lower on Wednesday, driven by heavy losses in technology shares. The S&P 500 fell 0.5%, marking its fifth decline in six sessions. The Nasdaq Composite slid 1.5%, while the Dow rose 0.5%, supported by gains in non-technology stocks. More stocks rose than fell within the S&P 500, but weakness in large technology names pulled the index lower for a second straight day.

Chipmaker Advanced Micro Devices plunged 17.3% despite reporting quarterly profit above expectations and issuing a revenue outlook that exceeded forecasts. Investors focused instead on valuation concerns after the stock had doubled over the past year.

Technology stocks remain under sustained pressure as investors question how much upside remains after a prolonged period of outperformance. Elevated expectations have left little room for disappointment, while uncertainty over how artificial intelligence will reshape competition and profitability has added to volatility. Rising capital spending to stay competitive in AI continues to cloud near-term returns.

Further pressure came from company-specific results. Uber Technologies fell 5.1% after reporting weaker-than-expected quarterly results and issuing a lower profit forecast alongside the appointment of a new chief financial officer. Super Micro Computer rose 13.8% after posting stronger-than-expected profit, standing out as an isolated gainer.

Outside technology, Walmart shares edged higher, lifting the retailer’s market value above $1 trillion for the first time. Broader sentiment remained cautious. The Nasdaq sits more than 3% below its record high, while the Dow is less than 1% from its peak. Major technology stocks including Microsoft, Amazon, and Nvidia declined as investors reassessed whether AI-driven spending can deliver sustainable growth.