Asian markets tumble as global AI stock selloff deepens

Wall Street slid further from its all-time high on Tuesday as artificial-intelligence stocks resumed their decline, dragging the major indexes lower for a third straight session. The S&P 500 fell 0.7%, closing at 7,691.76, after setting its record last Thursday. The Dow Jones Industrial Average dipped 116 points, or 0.2%, while the Nasdaq Composite sank 1.3%.finance.yahoo+1

Chip Stocks Lead the Retreat

Stocks tied to the AI boom were the heaviest drag on the market. Micron Technology ↘ 0.39% dropped 7% and was one of the largest weights pulling the S&P 500 lower. Nvidia ↘ 0.99% fell 2.3%, and Broadcom ↘ 4.61% sank 3.2%, according to the Associated Press. The PHLX Semiconductor index fell more than 5% on the session, with Intel ↘ 4.02%, Marvell ↗ 9.85%, and ARM Holdings ↘ 1.57% among the steepest decliners, according to The Wall Street Journal.wsj+1

The selloff reflects lingering investor anxiety that AI-related stocks have climbed too far, too fast — and that strong demand for memory chips, processors, and data center components could fade if AI fails to deliver the profits investors have priced in. Even so, many of these stocks remain up sharply for the year; Micron has more than tripled in 2026.latimes+1

Bond Yields and Oil Keep Pressure On

Elevated bond yields added to the market's unease. The yield on the 10-year U.S. Treasury edged down to 4.70% but remains well above its 3.97% level from before the war with Iran began. The 30-year Treasury yield is near its highest level since 2007. Rising oil prices — Brent crude has climbed from about $72.87 per barrel before the conflict to above $91 — have pushed inflation expectations higher, keeping yields elevated and weighing on risk appetite.finance.yahoo+1

High borrowing costs are already making an impact. A housing starts report on Tuesday showed homebuilders broke ground on fewer new houses than expected, and the average long-term mortgage rate is near its highest level in a year. Analysts warn that elevated yields could also slow borrowing by major technology companies funding data center construction, threatening a key growth engine for the U.S. economy.latimes+1

Spillover Across Global Markets

The selling extended into Wednesday's Asian session. South Korea's Kospi dropped 5.2%, led by Samsung Electronics and SK Hynix ↗ 0.35%, which fell 6.9% and 7.9% respectively. Japan's Nikkei 225 sank 2.6%, while Hong Kong's Hang Seng lost 0.4% and the Shanghai Composite shed 1.5%.finance.yahoo