Stock selloff goes global in worst rout in years - Semafor

Asian and European stocks followed US shares lower following the worst market rout since 2020 as investors fretted about the durability of the AI buildout under a Democrat-controlled Congress. Chipmaking hubs Taiwan and South Korea saw steep declines, the former suffering record losses and the latter halting trading after an 8% wipeout.

Markets fear curbs to AI development, reportedly leading some investors to question whether frontier lab Anthropic will achieve its $1.5 trillion IPO valuation target or have to delay its debut. Still, US futures signaled a bounceback while others remained undaunted: “It’s ugly right now,” an asset manager said. “But we do think we will see a bounce back soon.”