Global equity markets extended their decline on Tuesday, with technology stocks bearing the brunt of the selling pressure.
The rout followed a losing session on Wall Street, where tech-heavy indices struggled to find support as investors reassessed the valuation of artificial intelligence plays.
From Tokyo to Frankfurt, and Seoul to New York, major benchmarks traded in negative territory, reflecting broad-based risk aversion.
The selloff is driven by growing skepticism regarding the near-term profitability of AI investments and the sustainability of current valuations in the semiconductor sector.
Traders are increasingly questioning whether the massive capital expenditure cycle can generate returns commensurate with the premium multiples currently priced into leading tech names.
This shift in sentiment marks a significant departure from the consensus optimism that fueled the rally earlier in the year.