Global Stock Market Slump Spurs Safe-Haven Rush

Global stock markets, especially tech shares, experienced a significant selloff, leading to increased volatility and a shift towards safe-haven assets like gold and bonds. Concerns about high equity valuations were echoed by major finance leaders, prompting anxiety over potential corrections similar to the dotcom bubble.

On Wednesday, global stock markets were gripped by a selloff, with a dramatic fall in tech shares sparking increased volatility reminiscent of levels last seen in April. This downturn propelled a scramble for safe-haven assets, including gold and government bonds.

Asian markets suffered notably, causing Japan's Nikkei to plunge close to 7% from Tuesday's highs, while South Korea's shares dropped by up to 6.2% before recovering slightly.

Concerns were further fueled when financial industry leaders questioned the sustainability of current equity valuations. Amidst enthusiasm for generative AI reminiscent of the dotcom bubble, the market's dependency on continued growth is being scrutinized.

(With inputs from agencies.)