Global stocks slide as AI worries deepen after US tech rout

Global equity markets fell on Friday as investors sold technology shares on mounting concerns about artificial intelligence valuations, with Asian and European markets following a sharp US tech rout. The selling came after Wall Street's worst day in 19 months, and many analysts predicted further waves of selling to come.

The Guardian reported that the declines were driven by "big worries over AI," with the technology sector bearing the brunt of the pressure. US tech stocks posted only a modest recovery on Wall Street after the rout, while European and Asia-Pacific markets continued to slide.

The latest US jobs report beat forecasts, but that was not enough to steady sentiment in technology shares, which have been the main engine of global equity gains. The divergence between resilient labour market data and the sell-off in tech stocks underscores how sensitive investors have become to anything that challenges the AI-driven growth narrative.

The scale of the move — the worst day for US tech in 19 months — signals that positioning in the sector had become stretched, and the follow-through selling in Europe and Asia suggests the correction is not confined to one region. For investors, the key question is whether this is a short-term shakeout or the start of a broader repricing of AI-related assets. Analysts quoted in the report expect more volatility ahead, warning that further waves of selling are likely as the market reassesses the risks embedded in the AI trade.