Global Stock Markets Slide on Deepening AI Selloff and Economic Uncertainty

Global financial markets extended losses for a third straight session on Friday as investors grappled with sharp declines in technology shares, volatile precious metals and rebound moves in cryptocurrency trading, according to market data and analyst feedback. Global equity gauges showed notable weakness led by major Asian benchmarks and U.S. stock futures, highlighting nervous sentiment across asset classes.

Asian shares outside Japan fell, with South Korea’s key index triggering a temporary trading halt after a steep drop in early trade. U.S. stock futures on the S&P 500 and Nasdaq were also lower, reflecting continued risk-off positioning on Wall Street. Concerns about a broader earnings and growth backdrop intensified after recent job-cut figures in the U.S. reached the highest January level in nearly two decades, underscoring rising economic stress.

The rout in technology stocks deepened as investors reassessed earnings prospects and the impact of rising capital spending by major firms. Heavyweights such as Amazon saw their share prices tumble, with the e-commerce and cloud giant’s stocks dropping sharply after signalling significant increases in capital expenditure for the coming year. The selloff in software and tech services led to substantial market value erosion, fuelling broader market weakness.

Precious metals, which had recently benefited from safe-haven buying, came under pressure as bullion prices edged lower from intraday rebounds. Silver in particular experienced dramatic swings, first plunging and then showing limited recovery. Cryptocurrencies also showed heightened volatility; Bitcoin and Ether both rallied from earlier lows but remained within a wider pattern of sharp movement.

Bond markets reflected cautious positioning as traders weighed anticipated rate moves by the U.S. Federal Reserve. Futures markets adjusted to rising odds of potential monetary policy cuts at upcoming meetings, though most still project a period of policy stability in the near term. The U.S. dollar remained relatively stable against major peers, while Japanese government securities saw increased demand ahead of a national election. Brent crude futures edged lower in thin trade.

Global equities now stand below recent highs, with key indexes flirting with negative territory for the year. Market participants cite a combination of compressed profit outlooks in technology, rising layoffs and macroeconomic uncertainty as the core drivers for persistent downside pressure across markets.