The selloff hit semiconductor-heavy indices particularly hard, with South Korea’s Kospi sliding 3.5% and Japan’s Nikkei 225 dropping 2.1%. European markets echoed the sentiment, led by a 6% decline in ASML shares. Mikhail Zverev, fund manager at Amati Global Investors, noted that the narrative has shifted, as capital markets are now punishing companies for heavy AI spending rather than rewarding them as they did in previous quarters.

Adding to the volatility, the cryptocurrency sector faced a historic shock after Binance confirmed a $6.3 billion heist. Bitcoin dipped below $78,000, while ether retreated toward $2,200. Amid the broader risk-off environment, investors poured into government debt, driving two-year Treasury yields below 4.600%—a level not seen since early September—as expectations for a December Federal Reserve rate hike cooled. Conversely, Brent crude prices climbed over 2% to reach $117.50 a barrel, further complicating the outlook for energy-sensitive inflation metrics.