Global Markets Retreat as AI-Linked Stocks Trigger Tech Sell-Off

Overview

• A sharp U.S. technology sell-off earlier this week wiped about $2.3 trillion off Nasdaq market value and set off contagion that drove losses across Asian and European bourses.
• Friday’s trading saw chip names such as Nvidia, AMD and Sandisk recover some ground while the Nasdaq still posted its fourth consecutive weekly drop, marking a broader correction in U.S. tech.
• Markets in Asia showed acute stress as Japan’s Nikkei fell more than 20% from its peak to enter bear-market territory and South Korea’s Kospi plunged about 8.8%, triggering a 20-minute circuit breaker.
• The U.S. payroll report showed 165,000 jobs created and unemployment at 4.1%, lifting the probability of a December Federal Reserve rate hike to roughly 77–78% and adding policy-driven downside risk to high-valuation AI plays.
• Investors and wealth managers are urging greater selectivity and regional rebalancing because doubts about data-center demand, regulatory oversight of AI infrastructure, and concentration in chip supply could prolong volatility and reshuffle portfolios.