AI Bubble Triggers Mass Stock Sell-Off on Global Markets

A massive sell-off of technology stocks in the US has triggered global instability in financial markets. The decline affected not only American indices but also Asian exchanges and commodity assets.

Asian Markets Show Significant Decline Under Investor Pressure

In South Korea, the Kospi index fell by 3.5%, with Samsung and SK Hynix shares losing 3% and 7.1% respectively. In Japan, the Nikkei dropped by 3%, and the Bank of Japan announced an acceleration in ETF sales. Taiwan's stock index lost 2.5%, while China's CSI 300 fell by 1.4%. China's losses for October reached 8.5%, marking its worst performance since 2016. Indonesia showed a monthly market decline of 18%, representing its weakest indicator in nearly 20 years.

Amid Panic, Capital Flows into Safer Assets Such as US Government Bonds

The yield on ten-year Treasury bonds during Asian trading hours decreased by more than 7 basis points. This indicates investors seeking refuge from volatility in equity markets.

Gold and Silver Also Under Pressure Despite Safe-Haven Status

The combined market capitalization of gold and silver mining companies shrank by approximately $1 trillion. This occurred against the backdrop of a broader sell-off of risky assets.

Weak Corporate Reports and Rising AI Spending by Tech Giants Drive Market Panic

Investors are reassessing industry prospects, fearing the formation of a bubble in the AI company market. High costs for technology development coupled with insufficient profits are forcing the market to reevaluate the value of technology stocks.