Tech market sell-off deepens amid fears over US inflation and AI debt

Global tech markets are experiencing a significant sell-off, particularly affecting AI-linked shares and chip makers, due to rising US inflation fears and potential interest rate hikes. South Korea's Kospi 200 index, heavily weighted in memory chip companies like Samsung Electronics and SK Hynix, fell over 8%. Japan's Nikkei 225 also dropped, with Kioxia and SoftBank seeing substantial declines. This follows losses on Wall Street, with the Nasdaq and S&P 500 falling. Higher-than-expected US inflation data for September has led investors to anticipate further interest rate increases from the US Federal Reserve. The International Monetary Fund has warned that an AI share price correction could pose a risk to global financial stability.

US stocks experienced their worst day since July on Wednesday, with major indices declining. The S&P 500 fell 1.1 percent, marking its fifth loss in six days. The Dow Jones Industrial Average decreased by 48 points, or 0.1 percent, and the Nasdaq composite slid 1.9 percent. Stocks, particularly in the artificial-intelligence sector, were pulled lower. This downturn was influenced by rising bond yields, fueled by concerns stemming from a report indicating worsening inflation.