Global Stocks Retreat as Tech Sell-Off Deepens

NEW YORK: Global equity markets faced renewed pressure on Friday as a broad sell-off in technology and artificial intelligence (AI)-related stocks dampened investor confidence, while rising oil prices added to inflation concerns.

On Wall Street, the S&P 500 fell 1.09% to 7,659.44, while the technology-heavy Nasdaq Composite plunged 2.15% to 26,140.03. The Dow Jones Industrial Average also declined 0.34% to finish at 52,002.41.

Technology shares remained under pressure amid concerns over intensifying competition from China’s semiconductor industry and increasing financing costs associated with large-scale AI infrastructure investments.

Adding to market uncertainty, Brent crude oil surged to US$109.86 per barrel as geopolitical tensions involving the United States, Iran and the Russia-Ukraine conflict intensified. Higher energy prices have raised fears of persistent inflation, potentially complicating the global interest rate outlook.

Stocks Retreat

In Europe, sentiment was relatively more positive, with the STOXX Europe 600 gaining 0.72% in early trading as investors returned to selected technology counters following recent weakness.

Asian markets ended largely higher, supported by a rebound in technology stocks after previous losses. Japan’s Nikkei rose 1.39%, South Korea’s KOSPI climbed 2.05%, and Hong Kong’s Hang Seng added 0.52%.

Analysts expect global markets to remain volatile in the coming weeks as investors assess geopolitical developments, inflation risks and central bank policy decisions, particularly the upcoming US Federal Reserve meeting. The direction of technology shares is likely to remain a key driver of broader market performance.

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