Tech market sell-off deepens amid fears over US inflation and AI debt
Chip makers and tech investors such as Samsung and SoftBank plunge as global investors fret over potential interest rate hikes Business news – live updates Larry Elliott: the global economy is muddling through. But a storm is coming An accelerating sell-off of AI-linked shares has hit global markets, as fears over rising inflation and future interest rate hikes spooked traders already wary of the…
The tech market experienced a significant sell-off as investors grew concerned over rising US inflation and potential interest rate hikes, according to Larry Elliott. Chip manufacturing and tech firms such as Samsung and SoftBank saw their stocks plummet amid investor anxiety. The acceleration in AI-linked share declines weighed heavily on global markets, prompting circuit breakers and trading halts in some cases.
South Korea's Kospi 200 index, heavily exposed to memory chip producers, plummeted over 8% to its six-month low. Japanese stocks also suffered, with the Nikkei 225 dropping 4.9% after a sharp decline in Kioxia and SoftBank. Wall Street's previous day losses mirrored the current downturn, with the Nasdaq Composite slipping 1.9% and the S&P 500 falling 1.1%.
The sell-off was triggered by US inflation data showing a sharper increase than anticipated, at 3.7% in September, stoking fears of further interest rate hikes by the Federal Reserve. Deutsche Bank analysts forecast additional rate hikes as early as the end of the month. The International Monetary Fund expressed concern that an AI share price crash could destabilize global financial markets.
While US stocks suffered the most, Asian markets, particularly China and Taiwan, experienced sharp declines in various indices. European markets also saw a modest decline, reflecting broader market unease.
Written by urgent.news from The Guardian's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
