Global stock markets witnessed a major downturn on November 5 and 6, 2026, as growing concerns over artificial intelligence investments triggered heavy selling across technology stocks. Wall Street suffered significant losses, with the Nasdaq 100 losing around $2.5 trillion in market value after falling 6.4%. The Nasdaq Composite also dropped 5.5%, recording its steepest single-day decline since April 2025. The sudden fall raised concerns among investors about the future direction of the global technology sector.
South Korea's Kospi Plunges Nearly 9%
The market pressure quickly spread across Asian stock exchanges, with South Korea's benchmark Kospi index falling nearly 9% during early trading on Friday. The sharp decline triggered a circuit breaker, temporarily suspending trading for 20 minutes. Major technology companies, including Samsung Electronics and SK Hynix, experienced significant share price declines. Japan's Nikkei 225 also dropped sharply, while other Asian markets faced similar selling pressure. The developments highlighted how closely connected global technology markets have become.
Why Are Investors Selling AI Stocks?
Growing uncertainty surrounding artificial intelligence investments is one of the major reasons behind the market decline. Investors are questioning whether the enormous spending on AI infrastructure and data centres will generate sufficient returns. Concerns have also increased following the US midterm election results, as investors anticipate possible regulatory changes and restrictions on data centre expansion. Companies heavily involved in semiconductor manufacturing and AI technology have therefore come under pressure, reversing some of their earlier market gains.
Technology Giants Face Growing Market Pressure
Several major technology companies recorded substantial losses during the Wall Street downturn. Nvidia shares declined around 9%, while Advanced Micro Devices (AMD) dropped more than 17%. Semiconductor companies were among the worst affected as investors reduced their exposure to high-growth technology stocks. Market experts are closely monitoring whether the decline represents a temporary correction or a broader change in investor confidence. The latest sell-off has raised fresh questions about AI valuations and the stability of global financial markets.
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