economy
US AI stock sell-off shakes markets from Wall Street to Asia
Losses spread globally as investors questioned soaring valuations and spending on AI infrastructure
TL;DR
- Global markets experienced a tech sell-off, with the Nasdaq closing 2.2% lower.
- US indices had hit record highs this year, driven by AI funding, but are now showing declines.
- Economists warn of a potential AI spending bubble, comparing it to the dot-com bubble.
- Alphabet and Elon Musk's SpaceX saw significant stock drops, raising concerns about AI spending and financing.
- The sell-off spread to Asia, with South Korea's benchmark closing 10% down.
- Some markets, like London's FTSE 100, remained steady.