Global Tech Selloff Hits Markets Amid AI Sustainability Fears
Global technology stocks plummeted on October 15 as investors feared Federal Reserve rate hikes and questioned the long-term sustainability of the artificial intelligence boom.
A global selloff in technology stocks hit Asian, European, and American markets on October 15, 2026. The decline was driven by a combination of higher-than-expected inflation data and investor concerns regarding high leverage in the AI trade. Fears that the Federal Reserve System would raise interest rates prompted a shift toward bonds as a safe haven.
Market losses were severe in Asia, where South Korean technology indices fell approximately 7.5% and Japanese indices dropped around 5%. In the United States, the Nasdaq fell nearly 2%, while Germany's DAX opened lower with firms such as Infineon Technologies and Aixtron dropping about 9%. SoftBank Group shares also fell by 10%.
Despite strong fourth-quarter sales guidance and earnings from Taiwan Semiconductor Manufacturing Company (TSMC), the positive reports failed to stabilize the market. Analysts noted that investors used the strong earnings as opportunities to exit their positions. Volatility was further exacerbated by concerns over the financial stability of highly leveraged AI infrastructure firms like CoreWeave, which has faced capital raising challenges.
