Tech Tumbles: Market Jitters Over AI Stocks Shake Global Shares
Asian markets followed Wall Street's dramatic dip, driven by concerns over overheated AI stock prices like Nvidia. Tech-heavy stocks in South Korea, Japan, and China felt the brunt of the decline. Additionally, uncertainties around US interest rate cuts fueled broader market apprehensions globally.
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On Friday, Asian markets mirrored Wall Street's steep decline, rattled by fears that AI stocks like Nvidia may be overheated. Significant sell-offs in tech giants, notably in South Korea's Kospi and Japan's Nikkei, signified a widespread concern about valuation levels.
In China, economic data revealed sluggish factory output growth, adding to investor anxiety. The slowdown was highlighted by a dip in factory investments, weighing down business spending as property investments continued to weaken. These factors contributed to a broader market decline, including Australia's ASX and India's BSE Sensex.
US futures remained relatively stable, although apprehension loomed over the Federal Reserve potentially halting rate cuts, a necessary boost many investors anticipated. This uncertainty dampened morale across markets, intensifying the sell-off of AI and tech-forward stocks amid rapid-fire gains in the sector.
(With inputs from agencies.)
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