Overview
- Major technology and chip stocks plunged in a wave of selling on Thursday after stronger‑than‑expected U.S. inflation rekindled fears of higher interest rates and higher borrowing costs for capital‑intensive projects.
- Industry leaders ASML and TSMC reported record results and said demand still outstrips supply, with ASML warning its planned 2027–28 capacity may not meet customer orders.
- Signs of distress at some AI infrastructure operators, most notably steep equity losses and widening bond moves for CoreWeave, focused attention on firms that rely heavily on external financing.
- The market impact was uneven with South Korea hit hardest—Kospi plunged around 8 percent and trading was briefly halted—while European indices showed smaller losses and began a fragile recovery by Friday.
- Investors are now watching upcoming earnings, credit spreads and Fed guidance at the late‑October meetings for direction because sustained higher rates would raise the cost of building data centres and could slow or delay AI projects and jobs.