Global Markets Face Tech Sell-Off and AI Bubble Fears

Key Intelligence

• ■Major tech stocks, including Meta and Tesla, experienced significant declines following disappointing earnings and growing investor concerns over AI spending and the potential for an AI bubble, leading to the Nasdaq's worst day since June.
• ■The tech downturn has spread globally, with China shares entering a bear market due to fading AI trade optimism and policy hopes, and SoftBank's market value poised to halve from its peak.
• ■Investors are exhibiting increased risk aversion, evidenced by declining copper prices and a flight to safety, pushing long-end US bond yields to a one-month low.
• ■Amidst the broader market jitters, crude oil prices rallied following geopolitical events, including deadly attacks in Saudi Arabia and warnings from Iran.