Asian Markets Plummet Following US AI Stock Sell-Off

Nov 6, 2026

90 min

Nov 6, 2026 02:31

Asian markets follow US plunge as AI stocks face fresh sell-off

## Asian Markets React to US Stock Decline

Asian stock markets experienced significant losses on Friday, mirroring a steep sell-off in the United States. Concerns over investments in artificial intelligence (AI) have shaken global investors, leading to a sharp decline in major Asian indexes.

Japan's Nikkei 225 fell by 6.2% to 57,271.19, while South Korea's Kospi dropped 7.1% to 5,000.25. Australia's S&P/ASX 200 also saw a decrease, falling 0.7% to 9,003.40. These declines followed a tumultuous session on Wall Street, where major US indexes suffered their worst losses in months.

## Wall Street's Significant Drop

On Thursday, the S&P 500 experienced its largest daily drop since April 2025, falling 4.4%. The Dow Jones Industrial Average decreased by 1,833.06 points, or 3.4%, to 51,523.06, while the Nasdaq Composite tumbled 5.5% to 24,315. The Nasdaq, heavily influenced by technology and AI stocks, is now 11.9% below its recent peak.

## AI Stocks Under Pressure

The sell-off was led by companies heavily invested in AI and data centers. Concerns about the sustainability of high spending on data centers and the potential overvaluation of AI stocks have contributed to the market's volatility. Nvidia, a major player in the AI sector, saw its shares drop 9.3% on Thursday.

## Political and Economic Factors

The recent US midterm election results have added to investor uncertainty, with Democratic wins raising the possibility of new restrictions on data center construction. Additionally, rising oil prices due to ongoing tensions with Iran have further complicated the market landscape.

## Investors Seek Stability

Amid the market turmoil, investors have turned to safer assets, resulting in a decline in US Treasury yields. The yield on the 10-year Treasury fell to 4.84% on Thursday. In currency markets, the US dollar gained slightly against the Japanese yen, while the euro remained stable.

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