What happened
Asian stocks mostly fell Monday after Wall Street's tech-led selloff, with the Nasdaq more than two percent down and CoreWeave's stock down around 30 percent this month on debt concerns.
Why it matters
The pullback suggests investors are reassessing the economics of the AI investment boom, questioning whether future revenue can justify spending on data centers, chips and power infrastructure.
Summaries like this, in your inbox every morning.
The selloff in Asia follows a tech-led retreat in New York on Friday, where all three main indexes ended sharply lower. Chipmakers and AI-linked firms have come under pressure from concerns about surging inflation, rising costs, and uncertainty over when the vast sums invested in the sector will pay off.
CoreWeave's debt troubles have added to the anxiety. The "neocloud" firm's stock has fallen around 30 percent this month as bond yields soared. Reassuring comments from Nvidia chief Jensen Huang on CoreWeave's financial health briefly supported Asian markets on Friday, but that optimism faded by Monday.
Investors are also watching this week's earnings from Tesla and Meta, and next week's Federal Reserve rate decision. Higher rates tend to hurt tech firms that rely on borrowing to fund large investments. Meanwhile, China's economy grew 4.5 percent in the third quarter, slightly better than forecast, but markets showed little immediate reaction.
Pick your industry and the AI tools you use, and get news related to your work every day.
Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →
Ask AI anything about this article. The AI reads this article, earlier AIToday articles, and Wikipedia, and cites its sources. Q&As are published on this page for other readers too.
Taiwan-based iBase Solution is expanding from industrial computers (IPCs) and energy storage into liquid-coole…
Setagaya Ward tested Genspark, an AI agent tool, and cut roughly 2,900 hours of work, according to Sho Miyama…
Anthropic said it will place 5% of its stock in the Anthropic Public Benefit Fund, pending shareholder approva…
Anthropic, developer of Claude, committed 5% of its shares to a new public benefit fund, with an extra 2% per…
Mercedes-Benz and NVIDIA are expanding their partnership to jointly develop next-generation driver-assistance…
DeepSeek released Search and Fetch APIs on October 17, 2026, with each endpoint priced at $0.75 per 1,000 call…
