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A significant selloff in semiconductor stocks affected major US indexes amid rising concerns regarding AI investment returns. The Nasdaq 100 dropped by 1.8%, continuing its longest losing streak since 2008. Market participants are questioning if AI infrastructure investments will yield profitable returns despite strong demand for chips. Federal Reserve Chairman Kevin Warsh maintained a neutral stance on interest rates during discussions at the IMF meetings.

US stock index futures pointed to a subdued open on Friday, as technology stocks came under pressure once again on worries about cracks building in the AI trade, though gains in Tesla offered some...

A key committee has approved new rules on "non-operating companies" that could remove Strategy from the MSCI World Index. The stock fell 4% in after-hours trading. With a float-adjusted market value of about $40 billion, Strategy is the largest of all the candidates for removal. JPMorgan has estimated the company could face roughly $2.8 billion in passive outflows if it is dropped from the index.

Dow ‌up 0.39%, S&P up 0.16%, Nasdaq down 0.08%

South Korea's KOSPI fell 7.57 per cent to a six-month low, with Samsung Electronics and SK Hynix leading the declines. US consumer prices rose 3.7 per cent year on year in September, above expectations, hardening views that inflation is sticky and keeping the prospect of further Federal Reserve rate hikes alive. Those rate concerns weighed on technology valuations, while doubts grew over the sustainability of returns on AI investment. Foreign investors net sold about $2.68 billion of South Korean shares on the day.

South Korea's Kospi slumps more than 7 per cent on Thursday

Japans Nikkei 225 plunged, while the broader Topix fell 2.5%, as AI-linked stocks led a broad selloff. Sentiment was hit by concerns over the financial health of US cloud-computing firm CoreWeave and fears of higher interest rates following hotter-than-expected US inflation data, Reuters reported. Chip equipment makers Advantest and Tokyo Electron tumbled 13.9% and 7.3%, respectively, while SoftBank Group slid 9.4%.

The benchmark KOSPI index plunged more than 5%, as a technology-led sell-off on Wall Street and persistent US inflation concerns heightened fears of interest rates remaining elevated.

Asian markets plunged on Thursday, with KOSPI crashing nearly 8 percent and Nikkei falling about 5 percent, as hotter-than-expected US inflation fuelled Fed rate hike fears and triggered a global selloff in AI and semiconductor stocks.