Analysts and investors react to AI market rout
SPY•The Nasdaq fell 5.5% on Thursday, while Seoul stocks plunged 8% and Tokyo’s Nikkei dropped more than 6% on Friday. Market participants cited shifting sentiment and concerns about constraints on data-center spending.
1. Markets tumble
The Nasdaq’s 5.5% drop on Thursday was its biggest since the 2025 tariff-triggered sell-off. Trading in Seoul was halted after stocks plunged 8% on Friday, and Tokyo’s Nikkei fell more than 6%. Michael McCarthy of Moomoo Australia and NZ said the sell-off suggested a possible significant turning point for the U.S. market. Mark Fuchs of Fuchs Capital Partners said expectations of higher bars for data centers could constrain spending, while the sector had already been repricing lower for more than a month.
