AI fears trigger global market selloff on Friday

Global stock markets fell sharply on Friday, driven by fears that massive investments in artificial intelligence may not yield expected returns and that a Democratic victory in the US midterm elections could lead to stricter regulations on data centers. European indices traded broadly lower, while Asian markets saw significant declines. Japan's Nikkei and South Korea's Kospi each fell about 6%, with the Kospi briefly plunging 8.8% before triggering a circuit breaker that suspended trading for 20 minutes. The selloff began on Wall Street Thursday, where the S&P 500 had its worst day since April 2025, dropping 4.4%, while the tech-heavy Nasdaq fell 5.5%, entering correction territory at 11.9% below its recent record. Major tech firms like Nvidia and AMD suffered steep losses. Despite Friday's declines, Chinese and Hong Kong indices ended the week higher, supported by government measures and bargain hunting. Analysts noted investors are closely watching for signs of a potential AI bubble in the US that could spill over to Chinese companies.