Some $2.3 billion in market value was wiped off the technology-focused Nasdaq 100, which fell 6.3% on Thursday. Another $2.8 trillion was wiped from the market value of the S&P 500, which fell 4.4%, the worst day for both indexes in 18 months, as President Donald Trump’s global tariffs rattled markets. US futures were mixed early Friday, but European stocks also opened lower after the dramatic sell-off in Asia continued. South Korea’s Kospi index fell more than 8%, causing a temporary trading halt across the market. There, AI data center memory suppliers Samsung and SK Hynix plunged more than 10% in the first few hours, before recouping some of their losses. Japan’s Nikkei 225 index fell as much as 6%, entering bear market territory. In Taiwan, home to some of the biggest AI companies, including chip supplier TSMC, the benchmark TAIEX index fell 9%. The outlook was not much better in Europe. London’s FTSE 100 index fell almost 2%, while the French and German indices, CAC40 and DAX, suffered similar hits. “Markets are being punished based on their dependence on the US AI infrastructure cycle,” Charu Chanana, chief investment strategist at Singapore-based SAXO Markets, told NBC News in emailed comments. Companies in Taiwan, South Korea and Japan are “clearly highly linked to the global AI investment cycle and therefore I am not surprised to see the magnitude of the correction today after the sharp correction in the US,” Tai Hui, JP Morgan’s chief market strategist in APAC, told NBC News in emailed comments. country. Gina Hinojosa as she was announced as the next governor of Texas at her watch party in Austin on Tuesday. Mikala Compton / The Austin American-Statesman via Getty The Democratic Congress could tighten scrutiny of the industry, including AI infrastructure projects, potentially causing delays and additional costs, adding to concerns investors have about the profitability of these investments. Asian markets were already in trouble The months leading up to the US election had already been a rollercoaster for Asian investors, whose fortunes soared in June during the AI stock boom, but have been suffering a brutal recent sell-off. The feeling that initial valuations of top AI companies were inflated was problematic enough for Asian markets, but the Democratic victory has introduced another layer of uncertainty. Markets largely expected losses for Trump Republicans, but not on this scale. “This is hugely important for Asia because much of the hardware supporting America’s AI ambitions is made here,” said SAXO Markets’ Chanana.
