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 is undergoing a significant sell-off as global investors become increasingly anxious about potential interest rate hikes, driven by higher-than-expected US inflation and concerns over the AI sector's debt levels. The US Federal Reserve is anticipated to take action soon, with traders pricing in further interest rate increases as early as the end of the month.
Key players such as Samsung and SoftBank have experienced sharp declines, with SK Hynix and Samsung Electronics seeing their stocks drop by nearly 11% and 9.5%, respectively. The South Korean Kospi 200 index, heavily weighted towards memory chip manufacturers, fell over 8% to a six-month low, triggering circuit breakers and halting trading in some instances.
Japan's Nikkei 225 also experienced a 4.9% drop after Kioxia and SoftBank posted significant losses. This turmoil follows US data revealing a higher-than-expected inflation rate of 3.7% in September, the fastest increase since May 2025. Investors are now bracing for potential further interest rate hikes from the US Federal Reserve, with some anticipating another increase as soon as the month ends.
Written by urgent.news from Guardian Technology's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
