Asian stock markets are bracing for declines as a sharp selloff in chipmakers intensifies concerns over artificial intelligence-driven volatility. The rout in technology shares overshadowed a drop in oil prices, which had been influenced by optimism around diplomatic efforts to resolve the Iran conflict.
West Texas Intermediate crude oil settled near $96.50 a barrel, reflecting the mixed sentiment in global markets. While most S&P 500 companies saw gains, the broader index struggled due to weakness in tech stocks. The Nasdaq 100 index plunged 10% from its October peak, officially entering a technical correction.
A key gauge of major chipmakers extended its three-day losing streak, shedding 12% in value. Apple Inc. also faced pressure ahead of its upcoming earnings report. Meanwhile, long-term US Treasuries performed well, benefiting from the shift in investor sentiment toward safer assets.