Global stock markets mostly declined on Thursday, extending losses from Wall Street as technology firms remained under pressure amid rising concerns over heavy investments in artificial intelligence and stretched valuations.
Although the sharp volatility seen earlier in the week has eased, investors are still cautious, with fears growing over how AI could disrupt existing business models and weaken company profits. Precious metals also suffered another major setback, with silver recording a steep fall.
Market anxiety was further fuelled by news that AI startup Anthropic, maker of the Claude chatbot, introduced a new tool that could help businesses handle legal work. The development triggered fresh worries across industries such as software, finance, and asset management, as investors weighed the possibility of AI cutting into traditional revenue streams.
Analysts noted that investors are increasingly shifting away from tech stocks after several years of strong gains, moving instead into more stable and cyclical sectors. Weak earnings reactions from major companies such as Alphabet, ARM, and Microsoft also supported the sell-off.
Chris Beauchamp, chief market analyst at IG, said the market downturn reflects growing discomfort over how quickly AI may reshape industries and whether established firms can protect their profit margins.
“The rout reflects growing unease about how quickly AI could disrupt existing business models and whether incumbent software companies can defend their margins,” he said.
On Wall Street, the tech-heavy Nasdaq dropped 1.5 per cent, while the Dow Jones gained 0.5 per cent, showing a clear rotation out of technology stocks.
The sell-off spread across Asia, with Seoul falling sharply by 3.9 per cent. Markets in Tokyo, Shanghai, Sydney, Wellington, Taipei, Mumbai and Bangkok also closed lower. Hong Kong managed to recover from early losses to finish slightly higher, while Singapore, Manila and Jakarta ended in positive territory.
In Europe, London opened lower, while Paris and Frankfurt recorded modest gains.
Silver and Gold Hit Hard Again
Silver prices plunged by more than 18 per cent as the sell-off in precious metals resumed. Gold also fell sharply, losing more than five per cent.
Both metals have experienced heavy swings in recent days, after earlier reaching record highs due to a weaker dollar, geopolitical tensions, and speculation around the US Federal Reserve.
Oil Prices Decline on Iran-US Talks
Oil prices dropped by more than two per cent at one point after Iran and the United States confirmed that nuclear talks would take place in Oman this week, easing fears of escalating tensions.
Bitcoin Slips Further
Bitcoin briefly fell to $70,010, its lowest level since November 2024, as investors continued pulling back from riskier assets. The cryptocurrency is now more than 40 per cent below its October record high of $126,000, with traders reportedly expecting it could fall below $65,000.
Read Also;
Dangote Refinery Giving Nigeria “Breathing Space” — NNPC Boss
Company Movers
In Japan, Panasonic shares surged as much as 15 per cent before closing up 8.4 per cent after the company announced deeper job cuts and reported quarterly profits above expectations. Sony also gained after raising its full-year profit and sales forecast, supported by a weaker yen.
Key Market Figures
Tokyo (Nikkei 225): Down 0.9%
Hong Kong (Hang Seng): Up 0.1%
Shanghai Composite: Down 0.6%
London (FTSE 100): Down 0.4%
Brent Crude: Down 1.7% at $68.27
WTI Crude: Down 1.7% at $64.01
Dow Jones: Up 0.5% at 49,501.30
