The numbers
The global tech selloff spread from Wall Street to Asian and European markets. South Korea's KOSPI closed at 5,059.69, down 324.11 points, or 6.02%, from the previous session, triggering a circuit breaker and a sell-side suspension; the Kosdaq closed at 644.27, down 34.14 points, or 5.03%. The UK's FTSE 100 opened down 1.5%, or 166 points, at 10,615.
| Index | Close | Change | Note |
|---|---|---|---|
| South Korea KOSPI | 5,059.69 | -6.02% | Circuit breaker and sell-side suspension triggered |
| South Korea Kosdaq | 644.27 | -5.03% | — |
| UK FTSE 100 | 10,615 | -1.5% (open) | Opened down 166 points |
Analysis
According to The Guardian, Asian stock markets fell sharply on Friday morning after Wall Street's selloff on Thursday, and investor sentiment then spread to London. The FTSE 100, which tracks blue-chip companies listed in London, opened down 1.5%. South Korea's decline was especially sharp: the KOSPI's 6.02% drop triggered a circuit breaker and a sell-side suspension, and the Kosdaq also fell 5.03%.
Another live report from The Guardian was headlined "AI panic grips markets," a sign of highly tense market sentiment. Related discussion on Hacker News drew 18 points and 2 comments.
The Guardian attributed the global stock plunge to fears of an AI industry slowdown after the Democrats' midterm victory. US tech stocks were sold off and the rout then spread to Asian and European markets, the report said. Doubts about the AI industry's growth prospects became the dominant narrative.
European stock markets have fallen sharply as a rout in US tech stocks spread across the Atlantic, after the Democrats’ midterms victory sparked fears of a slowdown in the AI industry.
— quoted from The Guardian
Investor sentiment traveled from Wall Street to Asia and then to London, creating a cross-market chain reaction, the report said.
What to watch
Markets are watching whether fears of an AI slowdown will persist and whether regulators will take further measures in response to the sharp swings. South Korea's trading after the circuit breaker also bears watching. The depth and breadth of the global tech selloff will depend on future AI industry data and policy signals.