Tech market sell-off deepens amid fears over US inflation and AI debt
Summary
Global stock markets have fallen sharply, especially shares related to artificial intelligence (AI) and memory chip makers. This drop was caused by worries about higher inflation in the US and the possibility that the Federal Reserve will raise interest rates again soon.Key Facts
- South Korea’s Kospi 200 index fell over 8%, hitting a six-month low and causing trading pauses.
- Major companies like SK Hynix and Samsung Electronics saw their shares drop about 11% and 9.5%, respectively.
- Japan’s Nikkei 225 index dropped 4.9%, with large declines in memory chip maker Kioxia and SoftBank.
- US stock indexes also fell, with the Nasdaq down 1.9% and the S&P 500 down 1.1%, marking the worst day since July.
- US inflation rose to 3.7% in September, faster than expected and raising fears of more interest rate increases by the Federal Reserve.
- The International Monetary Fund warned that a sharp drop in AI-related shares could threaten global financial stability.
- Chinese and European markets also experienced losses, with Shanghai’s CSI 300 and Taiwan’s TSMC shares dropping.
- Stock futures in the US indicated further expected losses for technology stocks.
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