LIVE : Why are artificial intelligence stocks falling?
Global equity markets edged lower on Thursday as concerns over artificial intelligence spending and the prospect of higher US interest rates weighed on technology stocks, triggering sharp losses across Asian markets.
South Korea’s KOSPI plunged nearly 8%, while Japan’s Nikkei 225 fell almost 5% as investors reassessed valuations across the AI sector and questioned whether demand for data centres and computing capacity could sustain current investment levels, Reuters reported.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 3.04%, its biggest one-day decline since late July. The global MSCI index fell 0.19%.
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In the United States, technology shares remained under pressure, with the Nasdaq Composite down 0.23% and the Philadelphia Semiconductor Index falling 2%. The Dow Jones Industrial Average rose 1.07%, while the S&P 500 gained 0.16%, recovering from earlier losses as healthcare and materials stocks advanced.
CoreWeave, a heavily indebted data-centre operator exposed to the AI infrastructure market, fell a further 1.8% after losing 15% in the previous session.
Investors have grown increasingly concerned about the sustainability of spending on AI infrastructure, including the construction of data centres and the computing capacity required to develop and run advanced models.
Rong Ren Goh, a portfolio manager at Eastspring Investments, said the selloff reflected caution toward more vulnerable parts of the AI sector, alongside questions about the pace of development of advanced AI models.
Higher borrowing costs are adding to those concerns, as capital-intensive infrastructure projects become more expensive to finance.
European shares recovered from early losses to close 0.33% higher.
US rate uncertainty weighs on markets
Bond yields declined as investors reassessed the outlook for US monetary policy. The yield on the benchmark 10-year US Treasury note fell 10.29 basis points to 5.087%, marking its largest daily drop in more than a year, according to Reuters.
US producer prices rose by the most in four and a half years in September, pointing to broader inflation pressures across goods and services. Retail sales also increased more than expected, supported by higher gasoline prices, although spending in other areas remained moderate.
The latest inflation figures have added uncertainty to expectations for the Federal Reserve’s next policy decision. Futures markets were pricing in a 73% probability that the Fed would leave interest rates unchanged at the conclusion of its October 28 meeting, according to CME Group’s FedWatch tool.
The US dollar retreated from an 18-month high. It slipped 0.1% against the Japanese yen to 158.14, while the euro rose 0.42% to $1.12 and the British pound gained 0.45% to $1.33.
In commodity markets, Brent crude rose 0.2% to $106.35 a barrel after reversing earlier losses. Traders weighed the potential effect of US sanctions relief on oil supplies against attacks on shipping through the Strait of Hormuz.
Spot gold advanced 1.23% to $4,155.78 an ounce.
The market moves reflect mounting uncertainty over the outlook for AI-related investment, the cost of financing major technology projects and the Federal Reserve’s next interest-rate decision.
15 Oct 2026 - 23:45 (23:45 GMT)
Wall Street steadies as global AI stock selloff rattles markets
Wall Street steadied on Thursday after a sharp global selloff in artificial intelligence-related stocks, with the S&P 500 recovering from early losses while technology shares continued to weigh on the Nasdaq Composite.
The S&P 500 edged up 0.1%, moving closer to its record high set the previous week. The Dow Jones Industrial Average gained 463 points, or 0.9%, while the Nasdaq fell 0.4% as of 2:17 p.m. Eastern time, according to the Associated Press.
The relative calm in the US market followed steep declines across Asia, where concerns about the sustainability of AI investment triggered a broad technology selloff. South Korea’s Kospi dropped 7.6%, while Japan’s Nikkei 225 fell 4.9%.
Investors have increasingly questioned whether the surge in spending on AI infrastructure can deliver returns sufficient to justify the cost. Technology companies are investing heavily in data centres and advanced chips, with some borrowing substantial sums to finance expansion.
Rising bond yields worldwide have made borrowing more expensive, adding pressure to companies that depend on continued investment in AI computing capacity. Higher yields can also make expensive stocks less attractive to investors by increasing the appeal of bonds and raising the cost of future growth.
CoreWeave, a provider of cloud-based AI computing services, recovered from early losses to trade about 2% higher on Thursday. Its shares had plunged 15.5% in the previous session.
The company said over the summer that it faced $4.41 billion in principal debt payments during the second half of 2026 and another $6.18 billion in 2027. CoreWeave held more than $5.5 billion in cash as of June 30, according to the report.
The latest market swings mark a shift after AI-related companies helped drive stock gains for several years. Investors are now weighing the technology’s potential to improve productivity and generate profits against the substantial financing required to build and operate AI infrastructure.
Despite the continuing pressure on technology shares, gains across other sectors helped the broader US market recover during Thursday’s session.
15 Oct 2026 - 23:30 (23:30 GMT)
Dow rallies while Nasdaq slips as AI stocks face fresh pressure
US stocks closed mixed on Thursday as investors shifted away from technology shares amid concerns about artificial intelligence spending and rising inflation, while the Dow Jones Industrial Average advanced 550 points.
The Dow rose 1.1%, while the S&P 500 gained 0.3%. The Nasdaq Composite edged lower after recovering from steeper losses earlier in the session, as AI-related stocks and semiconductor companies remained under pressure.
The market movement followed a sharp selloff on Wednesday, when the Nasdaq fell 1.9% and the S&P 500 dropped 1.1% after stronger-than-expected consumer inflation data increased concerns that the Federal Reserve could raise interest rates later this month.
Fresh economic data released Thursday added to those concerns. The Producer Price Index, which measures changes in prices received by domestic producers, rose 1.3% in September from the previous month and 6.3% from a year earlier. Both figures exceeded economists’ forecasts and accelerated from August.
At the same time, US retail sales increased 0.8% in September, double the expected rise, while initial jobless claims came in slightly below forecasts at 199,000.
The combination of stronger inflation and resilient consumer spending has complicated expectations for the Federal Reserve’s next policy decision. According to CME FedWatch data cited by Investopedia, traders saw a 27% probability of a rate increase at the Fed’s October meeting.
Bill Adams, chief US economist at Fifth Third Commercial Bank, said the latest consumer and producer inflation figures did not indicate that price pressures were moving back toward the Federal Reserve’s target.
The yield on the benchmark 10-year US Treasury note fell to below 5.09%, retreating by nearly 10 basis points from Wednesday’s close. Yields had climbed following the latest consumer inflation report before reversing as the technology selloff drove investors toward safer assets.
AI stocks remain under pressure
Concerns about the cost of financing AI infrastructure continued to weigh on chipmakers and other technology companies.
Nvidia shares fell about 2% after declining 3% in the previous session. Apple shares also edged lower, while the Roundhill Magnificent Seven ETF, which tracks seven major technology companies, lost 0.3%.
The semiconductor sector remained under pressure. The iShares Semiconductor ETF fell about 2.5% after dropping 4.5% on Wednesday, while the Roundhill Memory ETF declined 3.5%.
Shares of Taiwan Semiconductor Manufacturing Co. fell 2.5% despite the company reporting record profit for a sixth consecutive quarter, according to the report.
CoreWeave, a data-centre operator backed by Nvidia, recovered from earlier losses to rise 3% after falling more than 15% on Wednesday. Investor concerns have centred on the company’s debt and the financing required to expand its AI data-centre infrastructure.
The pressure on AI-related stocks reflects growing uncertainty about whether demand for computing capacity will justify the scale of investment in data centres and advanced chips.
Oil and gold move higher
Commodity markets also saw mixed trading as investors assessed developments in the Middle East and broader economic conditions.
US West Texas Intermediate crude futures rose about 3% to nearly $98 a barrel, while Brent crude slipped 0.2% to $105.85 a barrel.
Gold futures gained 1.7% to around $4,180 an ounce. Bitcoin traded near $82,200, while the US dollar index fell 0.6% to 101.99.
Separately, International Paper shares surged 7% after the company said it was evaluating unsolicited approaches from potential bidders for its Europe, Middle East and Africa packaging business while continuing to pursue a planned spin-off. The company said both options were being considered in parallel.