MSCI All Country World index drops 0.5% as Asian chipmakers plunge over 10%, fueled by China competition fears and AI funding concerns.
Global stocks fell to their lowest level in a month as a sharp decline in chipmakers weighed on investor sentiment. The MSCI All Country World Price index dropped 0.5%, extending losses driven by concerns over Chinese competition and the sustainability of AI-related investments. U.S. rate hike expectations added to the downturn, pressuring markets further.
South Korea’s KOSPI led the selloff, tumbling more than 10% to a three-month low and triggering a circuit breaker. The index is on track for its worst monthly decline on record, surpassing losses seen during the 1997 Asian financial crisis. Shares of SK Hynix and Samsung Electronics fell over 12%, reversing gains from their recent rally. Nvidia and Micron also declined in premarket trading, with Nvidia shedding 5% after reports of a $250 billion financing commitment for OpenAI.
European markets fared better, supported by strong earnings from Unilever and Mercedes-Benz. However, technology stocks remained under pressure, reflecting broader weakness in the sector. The selloff highlights growing caution among investors amid shifting dynamics in global tech and monetary policy.