US markets today: Wall Street logs second sharp fall as AI favourites tumble; global indices mirror tech-led slump
US stocks extended their sharp decline on Friday, with Wall Street ’s highfliers — led by Nvidia and bitcoin-linked plays — continuing to lose steam, pushing the S&P 500 towards a second straight heavy loss.
The index was down 1.1% in early trading, following one of its worst sessions since the spring sell-off that triggered a global equities wipeout. The Dow Jones Industrial Average slipped 469 points, retreating further from its record earlier this week, while the Nasdaq composite dropped 1.6%. Gold prices also weakened, AP reported.
Global equities mirrored the slide earlier in the day. Asian and European markets were deep in the red as investors digested renewed anxiety around AI valuations, interest rate expectations and fresh signs of China’s economic slowdown.
In Europe, Britain’s FTSE 100 fell 1.1%, Germany’s DAX shed 0.7% and France’s CAC 40 slipped 0.4%. Oil, however, edged higher.
In Asia, stocks tumbled across major markets. South Korea’s Kospi sank 3.8% after chipmakers tied to Nvidia’s AI supply chain faced heavy selling — Samsung Electronics dropped 5.5% and SK Hynix slid 8.5%. Taiwan’s Taiex fell 1.8%, while Japan’s Nikkei declined 1.8% as SoftBank Group plunged 6.6%.
Chinese markets were also under pressure. Hong Kong’s Hang Seng lost 1.9% and the Shanghai Composite slipped 1%. Investors reacted to data showing China’s factory output rising just 4.9% in October — a 14-month low — while fixed-asset investment dropped 1.7% from January to October. Weak property investment remained a major drag.
Australia’s S&P/ASX 200 dropped 1.4% amid fading expectations of an RBA rate cut, and India’s Sensex dipped 0.4%.
The sharp sell-off followed a bruising Thursday session, when US indices suffered one of their worst days since April after President Donald Trump’s “Liberation Day” tariffs shocked global markets.
The S&P 500 tanked 1.7% on Thursday, pulling further off its late-October peak, while the Dow also fell 1.7% from its record. The Nasdaq composite slid 2.3%.
Nvidia was the biggest drag, sinking 3.6%. Other AI-linked names also tumbled — Super Micro Computer fell 7.4%, Palantir Technologies 6.5% and Broadcom 4.3%. Analysts have been warning that AI stocks , after months of spectacular gains, risk a dot-com-era-style correction. Palantir, for instance, was up nearly 174% for the year just weeks ago.
Broader selling intensified after investors grew sceptical that the Federal Reserve would deliver a third interest rate cut in December. Traders now see the odds at roughly 51.9%, down sharply from nearly 70% a week earlier, CME Group data showed. Concerns have risen as the Fed weighs inflation risks against economic uncertainty worsened by the prolonged government data blackout during the US shutdown.
Lower rates tend to lift asset prices and stimulus expectations. A Fed pause, after markets rallied to record highs assuming further cuts, has weakened sentiment across sectors.
US benchmark crude gained 74 cents to $59.43 a barrel, while Brent crude rose 69 cents to $63.70. The US dollar strengthened to 154.68 yen from 154.54, while the euro eased to $1.1627 from $1.1635.
The index was down 1.1% in early trading, following one of its worst sessions since the spring sell-off that triggered a global equities wipeout. The Dow Jones Industrial Average slipped 469 points, retreating further from its record earlier this week, while the Nasdaq composite dropped 1.6%. Gold prices also weakened, AP reported.
Global equities mirrored the slide earlier in the day. Asian and European markets were deep in the red as investors digested renewed anxiety around AI valuations, interest rate expectations and fresh signs of China’s economic slowdown.
In Europe, Britain’s FTSE 100 fell 1.1%, Germany’s DAX shed 0.7% and France’s CAC 40 slipped 0.4%. Oil, however, edged higher.
In Asia, stocks tumbled across major markets. South Korea’s Kospi sank 3.8% after chipmakers tied to Nvidia’s AI supply chain faced heavy selling — Samsung Electronics dropped 5.5% and SK Hynix slid 8.5%. Taiwan’s Taiex fell 1.8%, while Japan’s Nikkei declined 1.8% as SoftBank Group plunged 6.6%.
Chinese markets were also under pressure. Hong Kong’s Hang Seng lost 1.9% and the Shanghai Composite slipped 1%. Investors reacted to data showing China’s factory output rising just 4.9% in October — a 14-month low — while fixed-asset investment dropped 1.7% from January to October. Weak property investment remained a major drag.
Australia’s S&P/ASX 200 dropped 1.4% amid fading expectations of an RBA rate cut, and India’s Sensex dipped 0.4%.
The sharp sell-off followed a bruising Thursday session, when US indices suffered one of their worst days since April after President Donald Trump’s “Liberation Day” tariffs shocked global markets.
The S&P 500 tanked 1.7% on Thursday, pulling further off its late-October peak, while the Dow also fell 1.7% from its record. The Nasdaq composite slid 2.3%.
Nvidia was the biggest drag, sinking 3.6%. Other AI-linked names also tumbled — Super Micro Computer fell 7.4%, Palantir Technologies 6.5% and Broadcom 4.3%. Analysts have been warning that AI stocks , after months of spectacular gains, risk a dot-com-era-style correction. Palantir, for instance, was up nearly 174% for the year just weeks ago.
Broader selling intensified after investors grew sceptical that the Federal Reserve would deliver a third interest rate cut in December. Traders now see the odds at roughly 51.9%, down sharply from nearly 70% a week earlier, CME Group data showed. Concerns have risen as the Fed weighs inflation risks against economic uncertainty worsened by the prolonged government data blackout during the US shutdown.
Lower rates tend to lift asset prices and stimulus expectations. A Fed pause, after markets rallied to record highs assuming further cuts, has weakened sentiment across sectors.
US benchmark crude gained 74 cents to $59.43 a barrel, while Brent crude rose 69 cents to $63.70. The US dollar strengthened to 154.68 yen from 154.54, while the euro eased to $1.1627 from $1.1635.
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