AI-Driven Market Selloff and Dip-Buying Rebound
Equities suffered a sharp AI-led rout (S&P -4.4%, Nasdaq worst day since COVID, Nikkei bear market), with a premarket chip rebound that analysts warn may be fragile.
What we know
The S&P 500 fell 4.4%, its biggest drop since April 2025, and semis are down 37% since June. The Nikkei fell 6% into a bear market and the VVIX jumped 45 points. Premarket, chip stocks bounced sharply (SNDK +12%, MRVL +10%), but UBS warns the rebound may mislead as quant funds may still need to de-risk. Morgan Stanley says the correction is nearing its end, and hedge funds had a brutal October. Value is beating growth by a record spread.
How the story developed
Equities suffered a sharp AI-led rout (S&P -4.4%, Nasdaq worst day since COVID, Nikkei bear market), with a premarket chip rebound that analysts warn may be fragile.
The Nasdaq 100 had its biggest one-day drop since 2020 and the S&P lost about $3T. KOSPI and Nikkei futures then fell 7-9%, triggering halts, and Nasdaq futures were down 7.1% after hours.
Crypto held up despite the 'bearish if Republicans lose' thesis, while Nikkei and Nasdaq futures are lower, silver is up over 3%, and analysts split on a relief rally.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.