Economy News

Tech sell-off spreads from Seoul to Wall Street as doubts grow over AI returns

A sell-off in technology stocks deepened on Friday 30 October as investors questioned whether the huge sums being spent on artificial intelligence will pay off soon enough. In Seoul, The Korea Herald reports the KOSPI lost 206.92 points, or 3.48%, to close at 5,730.74, dragged down by chip stocks. Yonhap reports the Korea Exchange activated a sell-side ‘sidecar’ to slow trading after the sharp fall.

Wall Street followed. South China Morning Post reports the S&P 500 fell 1.8%, its worst day since June and a third straight losing week, while the Nasdaq dropped 2.9% and the Dow 572 points. The Guardian says the decline knocked nearly $1tn off the Nasdaq in one week and about $2tn in a month. CBC notes Canada's TSX fell 1.7%.

How each outlet framed it

• The Korea Herald and Yonhap — the chip angle: Korea's market, heavy in semiconductors, is exposed to any doubt about AI demand.
• The Guardian — disappointing earnings from leading tech firms, and whether billions in AI spending can make returns quickly.
• BBC News — AI spending nearing $1tn, with Intel shares still falling.
• CBC — worries over whether AI will produce enough profit and productivity to justify the cost.
• South China Morning Post — fears that the AI frenzy sent prices too high, though US stocks are only 3.1% below their peak.

Where the numbers differ: the Guardian said the S&P 500 fell ‘more than 1%’ during trading; SCMP's closing figure was 1.8%.