Global equity markets are under renewed pressure as investors grapple with a convergence of technological skepticism and geopolitical instability.
The selling pressure, which originated in US markets, has spread to Asian and European trading sessions, marking a continuation of the broader risk-off trend observed earlier in the week.
The primary driver of the latest decline appears to be growing doubts surrounding the artificial intelligence investment thesis.
After a prolonged period of optimism, market participants are increasingly questioning the near-term return on capital for AI infrastructure and software plays.
This shift in sentiment has triggered a broad-based selloff in semiconductor shares, a sector that has been central to the recent market rally.
Compounding the tech-led weakness is rising anxiety over escalating tensions in the Middle East.