Worldwide Sell-Off Hits AI-Linked Tech Firms as Investors Reassess Valuations
Global stock markets plummeted on Monday following a sharp sell-off of US tech stocks, driven by investor skepticism over how artificial intelligence leaders will fund their massive capital expenditure plans. At the same time, Brent crude prices surged by nearly 5% to $97.60 a barrel after Iran and Israel exchanged military strikes, disrupting hopes for the reopening of the crucial Strait of Hormuz. The market downturn was particularly severe in Asia, where South Korea's Kospi index plunged nearly 9%, forcing a temporary trading suspension led by major chipmakers Samsung and SK Hynix. Analysts note that the market is becoming highly selective, with investors demanding clearer proof of AI monetization and earnings delivery amid the threat of rising interest rates.