Global AI Stock Selloff Wipes $2.5 Trillion From Wall Street, Kospi Plunges 9%

Global markets plunged Friday as AI stock fears erased $2.5 trillion in US value, with South Korea's Kospi crashing 9% and triggering circuit breakers, while Japan's Nikkei fell 6% into bear market territory. The selloff followed Thursday's Wall Street rout where the Nasdaq dropped 5.52% into correction, and the Dow lost 1,833 points, reversing Wednesday's post-election gains. A Democratic win in Texas' gubernatorial race raised concerns about data centre restrictions, hitting Nvidia 9.3% and semiconductor stocks 12.3%. Investors also punished earnings misses, with Qualcomm falling 9.5%, while the VIX fear gauge surged 70%. The turmoil reflects growing worries about overbuilding AI infrastructure and whether massive capital spending will generate adequate returns.