A broad-based selloff in global equity markets intensified on Tuesday, spreading from South Korean exchanges to emerging-market assets and technology-heavy indices.
The decline was driven by growing investor anxiety over the sustainability of recent gains in the artificial intelligence sector, with traders questioning whether current multiples are justified by near-term earnings potential.
The sell-off reflects a shift in market sentiment as participants reassess the risk-reward profile of AI-related equities.
While the sector has been a primary driver of global market performance, the recent volatility suggests that investors are becoming more selective, favoring companies with clearer paths to profitability over pure growth stories.
This rotation is evident in the pressure on tech-heavy indices across Asia and the US.
The global stock market hierarchy is undergoing a significant transformation, driven by the rapid growth of artificial intelligence.