Add thelocalreport.in As A Trusted Source
Asian Stocks fell on Friday, leading to one of Wall Street’s worst days since April NVIDIA And other AI superstar stocks continued to fall on concerns that their prices had risen too high.
US futures were almost unchanged and oil prices rose.
South Korean Kospi It fell 3.2% to 4,038.61, leading the regional decline amid a global technical selloff. Samsung Electronics fell 4.1% and SK Hynix fell 6.4%. LG Energy Solutions lost 3.7%.
Taiwan’s Taiex lost 1.7%.
Japan’s Nikkei 225 fell about 1.7% to 50,438.99, reversing the previous day’s gains. SoftBank Group led the decline with a 5.7% decline amid losses in its technology and AI-related investments.
In Chinese markets, Hong Kong’s Hang Seng index fell 1.3% to 26,732.99, while the Shanghai Composite index slipped about 0.2% to 4,022.89.
Data on Friday showed China’s factory output contracted a 14-month low of 4.9% year-on-year in October, down from 6.5% in September and below expectations of 5.5%. Investment in fixed assets such as factory equipment also fell 1.7% year-on-year in the January to October period.
Persistent weakness in property investment was a major factor affecting business investment.
In Australia, the S&P/ASX 200 fell 1.4% to 8,628.30, as hopes for a rate cut by the Reserve Bank of Australia faded after a strong jobs report.
India’s BSE Sensex fell 0.4%.
On Thursday, the US stock market fell in one of its worst days since the spring selloff. There is doubt whether interest rates will be cut or not wall Street Expectations that this will actually happen have also weakened investor sentiment.
The S&P 500 fell 1.7% to 6,737.49, surpassing its all-time high set late last month. It was the worst day in a month for the index that centers on many 401(k) accounts and the second-worst day since April’s decline after President Donald Trump shocked the world with his “Liberation Day” tariffs.
The Dow Jones Industrial Average fell 1.7% to 47,457.22, from its record set a day earlier.
The Nasdaq Composite fell 2.3% to 22,870.36.
Nvidia was the biggest weight on the market after the chip company fell 3.6%. Other stocks caught up in the artificial-intelligence craze also struggled, including a 7.4% decline for Super Micro Computer, a 6.5% decline for Palantir Technologies and a 4.3% decline for Broadcom.
Questions are rising about how high the AI darlings can go after their already spectacular gains. For example, earlier this month, Palantir had gained about 174% so far this year.
Such sensational performances have been one of the top reasons why the US market has broken records despite a recession in the job market and high inflation. However, AI stock prices have soared so high that they are being compared to the 2000 dot-com bubble, which eventually burst and pulled the S&P 500 down by nearly half.
Meanwhile, stocks outside AI also fell on Wall Street as traders worried that the Federal Reserve might not make another cut in interest rates in December, as many were expecting.
Low interest rates can strengthen the economy and raise prices for investment, although they can also worsen inflation. A pause in cuts could weaken US stock prices as they have already hit record levels partly due to expectations of more cuts.
Expectations have diminished sharply in recent days that the Fed will cut its key interest rate for the third time this year. According to data from CME Group, traders now see the chance of a coin flip being roughly 51.9%, up from about 70% a week ago.
In other deals early Friday, U.S. benchmark crude oil rose 90 cents to $59.59 a barrel. Brent crude, the international benchmark, rose 87 cents to $63.88 a barrel.
The US dollar fell to 154.47 JPY from 154.54 yen. The euro rose to $1.1641 from $1.1635.
,
AP Business writers Stan Choe and Matt Ott contributed.