Global equity markets experienced a severe downturn on Tuesday, driven by intensifying fears surrounding the scale and sustainability of artificial intelligence investments.
The sell-off was particularly acute in Asia, where South Korea's Kospi index plummeted by over 10%, reaching its lowest level since April.
This sharp decline reflects a broader market reassessment of valuation risks in technology-heavy portfolios.
The volatility underscores a growing consensus among market participants that the relentless upward trajectory of AI-related stocks may have pushed risk appetite to extreme levels.
Investors are increasingly questioning whether current valuations can be supported by near-term earnings, leading to a rapid rotation out of high-growth tech names.
The breadth of the decline suggests that this is not merely a sector-specific correction but a wider repricing of growth equities.