Business · Singapore Bureau
Tech stocks tumble as Wall Street volatility gauge surges sharply
The Nasdaq 100 index fell 6.4% as market anxiety intensified, wiping out US$2.5 trillion in global equity value. The sharp selloff reflected renewed concerns about artificial intelligence valuations and broader market stability.
LSN Singapore ·
Technology stocks extended their recent losses as investor sentiment deteriorated across major exchanges, with the Nasdaq 100 declining 6.4% in a significant market pullback. The sell-off erased approximately US$2.5 trillion (S$3.2 trillion) in market capitalisation, signalling a marked shift in risk appetite among traders and institutional investors.
The decline was accompanied by a sharp increase in Wall Street's volatility index, a key measure of market fear and uncertainty. The gauge surged as investors reassessed positions in high-growth sectors, particularly technology and artificial intelligence-related equities that had driven much of the year's market gains.
The selloff underscored growing apprehension about valuation concerns in the artificial intelligence trade, which has attracted substantial investor capital in recent months. Market participants expressed concern about the sustainability of recent price movements and the concentration of investment flows into a limited number of mega-cap technology firms.
The market turbulence reflected broader macroeconomic uncertainties and questions about corporate earnings growth in coming quarters. Analysts noted the sharp correction served as a reminder of the volatility risks inherent in concentrated portfolio positions during periods of shifting market sentiment.