Tech stocks tumble as US inflation and AI debt fears hit global markets

Global markets experienced a sharp sell-off in AI-linked shares, driven by fears over rising US inflation and potential interest rate hikes. South Korea's Kospi 200 index fell 8.1% to a six-month low, triggering trading halts, while Japan's Nikkei 225 dropped 4.9%. US inflation data showed a higher-than-expected 3.7% rate in September, the fastest increase since May, prompting investors to anticipate fresh Federal Reserve rate hikes. Chip makers SK Hynix and Samsung plunged nearly 11% and 9.5%, respectively, while SoftBank fell 10% and Kioxia slumped 11%. The sell-off follows an International Monetary Fund warning that an AI share price crash could threaten global financial stability, with Asian markets most exposed. European stocks also opened lower, and US tech futures pointed to further losses.