Global stocks edge lower as AI and rate fears hit tech
SPY•Global equities edged lower as concerns about AI spending and higher interest rates weighed on technology stocks. The Nasdaq fell 0.23%, while the S&P 500 rose 0.16% and the Dow gained 1.07%; South Korea’s KOSPI plunged almost 8%.
1. Tech weakness weighs
Global equity markets edged lower as investors questioned the sustainability of demand for AI data centers and faced concerns about higher interest rates. The Nasdaq fell 0.23%, while the S&P 500 rose 0.16% and the Dow gained 1.07%; the Philadelphia Semiconductor index was down 2%.
2. Asian stocks plunge
South Korea’s KOSPI plunged almost 8%, and Japan’s Nikkei 225 fell nearly 5%. An investor said the selloff reflected caution toward more vulnerable parts of the AI ecosystem and concerns about demand for computing capacity and higher funding costs.
3. Yields and dollar retreat
The yield on 10-year US Treasury notes fell 10.29 basis points to 5.087%. Futures indicated a 73% probability that the Federal Reserve would hold rates at its October 28 meeting, while the dollar retreated from an 18-month peak.
