Global stock markets crash from America to Asia, investors lose ₹90 lakh crore
New Delhi (The Uttam Hindu): The artificial intelligence (AI) technology boom is now emerging as a major concern for global stock markets. Panic related to AI developments triggered a sharp sell-off in the United States, wiping out nearly $1 trillion in investor wealth, which is around ₹90 lakh crore. This decline was not limited to the US alone, as Asian markets also opened sharply lower on Friday. Investors are increasingly worried that new AI tools could disrupt and even replace several traditional business models.
Major US indices end sharply lower
Heavy selling pressure pushed all three major US indices into the red on Thursday. The S&P 500 fell by 1.57%, while the Dow Jones Industrial Average slipped 1.34%. The technology-heavy Nasdaq Composite saw the biggest decline, closing down 2.03%. Market experts believe the fall was driven by fears that AI-based tools could significantly alter sectors such as trucking, logistics, real estate, and software. Investors fear that AI-driven automation and data analytics may reduce demand for traditional services, directly impacting company profits.
Heavy selling in Apple and Cisco shares
The biggest impact of the sell-off was seen in major technology companies. Shares of Cisco Systems plunged nearly 12% after the company issued a weak outlook for the current quarter. This negative sentiment spread across the market, pulling down Apple shares by around 5%. This marked Apple’s biggest single-day fall since April 2025. Along with technology stocks, commercial real estate and financial sector stocks also remained under pressure, as investors fear AI could reduce margins by automating tasks such as brokerage and financial analysis.
Asian markets also turn weak
The sell-off that began in the US extended to Asian markets on Friday. Australia’s S&P/ASX 200 dropped about 1.02% in early trade. Japan’s Nikkei 225 slipped 0.58%, while the TOPIX also traded lower. South Korea’s KOSPI showed slight strength, but the small-cap KOSDAQ fell 1.36%. Futures for Hong Kong’s Hang Seng Index indicated a weak opening. Meanwhile, Taiwan’s market, considered crucial for the AI sector, remained closed due to the Lunar New Year holiday.