Asia stocks to drop after AI rout rocks US markets
SPY•Asia’s tech-heavy markets were braced for selling after the Nasdaq fell 5.5% and $3 trillion was wiped off S&P 500 companies. The Philadelphia Semiconductor Index slumped 12.2%, while bonds were poised to gain in Asia.
1. US stocks tumble
Fears of regulatory scrutiny and a slowdown in the AI buildout drove the steepest falls for US stocks since the tariff-triggered “Liberation Day” rout a year and a half ago. The Nasdaq fell 5.5%, and $3 trillion was wiped off S&P 500 companies as investors worried Democrats, who swept to power at the midterms this week, would apply the brakes to the AI boom.
2. Asia faces pressure
Asia’s chipmakers and data centre equipment suppliers in South Korea, Taiwan and Japan were seen as especially vulnerable after already tumbling on Wednesday and Thursday. The Philadelphia Semiconductor Index fell 12.2% overnight, while the Nasdaq has shed 12% from its record high close a month ago. Bonds were poised to gain in Asia, and the dollar slipped against the yen and Swiss franc.
