Analysts and investors react to AI market rout
QQQ•The Nasdaq fell 5.5% on Thursday, its biggest drop since the 2025 tariff-triggered sell-off, while Seoul trading was halted after stocks plunged 8% and Tokyo’s Nikkei fell more than 6%. Market participants cited shifting sentiment and concerns about data-centre constraints and AI demand.
1. Sharp market declines
The Nasdaq fell 5.5% on Thursday, its biggest drop since the tariff-triggered “Liberation Day” rout in 2025. On Friday, trading in Seoul was halted after stocks plunged 8%, while Tokyo’s Nikkei fell more than 6%.
2. Investors assess AI outlook
Moomoo Australia and New Zealand CEO Michael McCarthy said the sell-off suggested a possible significant turning point for the U.S. market, adding that some larger U.S. investors appeared to believe “the music has stopped.” Fuchs Capital Partners CIO Mark Fuchs said expectations of higher bars for data centres could reduce spending and constrain demand for Asian technology stocks. He said the sector had already been repricing downward for more than a month and favored non-AI sectors and countries with domestic growth stories, including India.
