US chip stocks set to wipe out $2 TRILLION as AI sell-off triggers circuit breakers across Asian markets
Oracle fell 7.8% and neocloud firms CoreWeave and Nebius each shed more than 11% as higher borrowing costs punished AI stocks amid the global sell-off.
A hotter-than-expected US inflation reading of 3.7% in September has sent shockwaves through global markets, with AI and chip stocks bearing the brunt as investors fear fresh interest rate hikes will make the sector's vast debt pile unsustainable. South Korea's Kospi 200 index plunged 8.1% to a six-month low, triggering circuit breakers that halted trading, while Japan's Nikkei dropped 4.9%. The collapse of a £20bn data centre deal has deepened the rout, and the cost of AI default insurance has spiked sharply.
Samsung Electronics fell nearly 9.5% and SK Hynix plunged 11% as memory chip stocks led the Asian carnage.
On Wall Street, the Nasdaq slid to a near one-month low, with the S&P 500 posting its worst session since July before healthcare stocks steadied the broader index.
