NASDAQ loses 4.4 per cent as semiconductor and artificial intelligence stocks face heavy selling, while European and Chinese equities record gains.
Global equity markets recorded mixed performances during the week, as a significant selloff in technology and artificial intelligence-related stocks weighed on investor sentiment, particularly across the United States and major Asian markets.
The downturn was driven by concerns surrounding the implications of the Democratic sweep in the US midterm elections, which heightened market fears over tighter artificial intelligence regulation and a potential slowdown in data centre spending.
The selloff triggered substantial losses across semiconductor and AI-linked companies, including Nvidia and Advanced Micro Devices (AMD), placing considerable pressure on major US equity benchmarks.
At the time of reporting, the Dow Jones Industrial Average had declined by 0.5 per cent, while the S&P 500 and NASDAQ Composite had fallen by 3.0 per cent and 4.4 per cent, respectively, positioning the indices for weekly losses.
The NASDAQ recorded the steepest decline, reflecting its higher exposure to technology companies and the pressure on major semiconductor and artificial intelligence stocks.
In contrast, European equities advanced during the period, supported partly by their relatively lower exposure to technology stocks.
The STOXX Europe 600 gained 1.3 per cent, while the FTSE 100 increased by 0.5 per cent, despite the Bank of England’s decision to raise interest rates.
Asian markets delivered mixed performances as Chinese equities advanced on the back of government support measures and central bank intervention aimed at strengthening market liquidity.
China’s Shanghai Composite Index gained 1.6 per cent, supported by the central bank’s swap facility designed to facilitate share purchases, alongside other policy measures intended to support the equity market.
However, Japanese equities suffered significant losses, with the Nikkei 225 declining by 9.1 per cent amid the broader global technology selloff. Heavy losses in SoftBank contributed to the market’s poor performance.
Emerging market equities also weakened, with the MSCI Emerging Markets Index declining by 1.5 per cent, dragged lower by substantial losses in Taiwan and South Korea, which fell by 12.2 per cent and 11.6 per cent, respectively.
Meanwhile, frontier market equities recorded a positive performance, as the MSCI Frontier Markets Index advanced by 1.0 per cent, supported by gains in Morocco (+4.7 per cent) and Kenya (+1.5 per cent).
The divergence in regional performance highlights the varying impact of technology-sector exposure, monetary policy developments and government intervention across global markets.
Going forward, investor sentiment is likely to remain sensitive to developments in the global technology sector, particularly concerns surrounding AI-related valuations, regulatory changes and capital expenditure by major technology companies.
