Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Asian chipmaking and technology stocks tumbled sharply on Wednesday, tracking heavy overnight losses in U.S. markets as investors grew increasingly wary of an artificial intelligence (AI)-driven market bubble.
South Korea’s KOSPI led regional declines, dropping as much as 6% as major tech firms SK Hynix Inc. (KS:000660) and Samsung Electronics Co. Ltd. (KS:005930) each shed nearly 6%. Taiwan Semiconductor Manufacturing Co. (TW:2330), a key player in the global AI supply chain, fell around 3%, while Hon Hai Precision Industry Co. Ltd. (TW:2317) dropped 1.8%.
Japan’s Nikkei 225 slumped 4.5%, dragged down by tech losses. SoftBank Group Corp. (TYO:9984) plunged nearly 14%, while Advantest Corp. (TYO:6857) and Lasertec Corp. (TYO:6920) sank 9.7% and 8.5%, respectively. Hong Kong’s Hang Seng Index slipped 1.1%, with Semiconductor Manufacturing International Corp. (HK:0981) losing 2.5%, and tech heavyweights Alibaba Group (HK:9988), Baidu Inc. (HK:9888), and Tencent Holdings Ltd. (HK:0700) sliding between 1% and 3%.
The selloff followed warnings from Wall Street executives at Morgan Stanley and Goldman Sachs about inflated valuations in the tech sector. Investor Michael Burry, known for predicting the 2008 financial crisis, also shorted AI leaders NVIDIA Corp. (NASDAQ:NVDA) and Palantir Technologies Inc. (NASDAQ:PLTR), adding to the bearish sentiment.
Wall Street’s NASDAQ Composite fell 2% overnight, with positive earnings from Palantir and AMD (NASDAQ:AMD) doing little to calm nerves. Investors grew uneasy as Meta and Microsoft’s soaring AI-related capital expenditures failed to deliver proportional returns, squeezing profit margins.
Concerns over circular AI financing intensified after NVIDIA announced a $100 billion investment in OpenAI—a major buyer of its chips—fueling fears of an overheated market. With NVIDIA’s earnings due on November 19, traders now await fresh signals that could determine the next major move in global tech stocks.
