Global Markets Tumble as US Inflation Surprises and Tech Stocks Slump

Asian stock markets plunged Thursday, led by a technology selloff after US inflation rebounded, raising expectations of an American interest rate hike. European markets also opened lower, dragged down by a massive semiconductor selloff. Tokyo's Nikkei fell 5.35% and Seoul's Kospi dropped 7.88% after a trading suspension. Paris, Frankfurt, London, and Milan all declined, while Brussels gained. US consumer prices rose 3.7% year-on-year in September, exceeding forecasts, fueled by high fuel costs from the Iran war and Ormuz Strait disruption. Markets already faced concerns over an artificial intelligence bubble. Even excluding volatile food and energy, US inflation accelerated to 2.6%. Analysts now expect at least one more Federal Reserve rate hike this year to contain price increases.