Markets in Asia and Europe tumbled on Thursday, following a sharp sell-off on Wall Street. Japan’s Nikkei index fell into bear market territory, dropping more than 20% from its recent peak. Investors grew increasingly concerned that massive spending on artificial intelligence may not yield returns soon, sparking fears of an AI bubble. The Nasdaq fell 3.1% as major tech stocks, including Nvidia and Microsoft, declined. The S&P 500 and Dow also dropped, marking one of the worst sessions for equities in weeks.
European markets mirrored the decline, with the Stoxx Europe 600 down 2.4%. Analysts warned that high valuations in the tech sector were becoming disconnected from earnings. The yield on 10-year U.S. Treasury bonds fell, signaling a flight to safety. Traders now await key inflation data due Friday, which could influence Federal Reserve policy.
The sell-off spread beyond tech to financials and industrials, reflecting broader market anxiety. While some see the pullback as a healthy correction, others fear it could signal a deeper slowdown in global growth.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing