Chip selloff drags global stocks lower on AI spending concerns

Global shares fell as investors sold semiconductor stocks following Qualcomm’s weaker-than-expected smartphone chip sales. Concerns that election results could slow US investment in AI infrastructure added to pressure on technology shares and pushed the Nasdaq towards a correction.

The Philadelphia Semiconductor Index dropped 11 per cent, while the Dow fell 2.2 per cent, the S&P 500 3.4 per cent and the Nasdaq 5.2 per cent. The MSCI All-World index lost 2.5 per cent and Europe’s STOXX 600 fell 0.67 per cent; meanwhile, Brent crude rose to about US$97 a barrel amid uncertainty over the Iran war.