By Karim Hammam
Global financial markets plunged on Friday following a massive sell-off in US technology stocks triggered by the mid-term election results and growing concerns over an artificial intelligence bubble.
Asian Markets Follow US Lead
Asian indices opened sharply lower, with Japan's Nikkei falling around 6% to dip below the 60,000 level for the first time since May. The drop was driven by heavy losses in technology giants SoftBank and Kioxia. South Korea's Kospi also slumped on sector weakness.
Tech Sector Bears Brunt
The rout wiped trillions of dollars from US equity markets, with the tech-focused Nasdaq 100 closing 6.4% lower. Chipmakers and AI firms led declines, including a more than 9% drop for Nvidia. Tesla and SpaceX shares fell around 10% and 9% respectively, reducing Elon Musk's net worth.
Trump Blames Democrats
President Donald Trump posted on Truth Social that the market suffered "one of the worst days in history," attributing the chaos to Democratic gains in the mid-term elections.
Analyst Warns of AI Bubble Burst
SwissQuote senior analyst Ipek Ozkardeskaya said the S&P 500 shed over 4% and the Korean Kospi dropped 5%, suggesting the memory-chip bubble had already burst in June and that the Nasdaq may have reached a boiling point.
