One signal

The AI-linked market sell-off spread across global markets on Friday, even as US shares began to recover. Japan’s Nikkei fell 6% overnight, while South Korea and Taiwan’s indexes dropped more than 8% at the open, This is Money reports.

In London, the FTSE 100 fell more than 200 points. The Nasdaq and S&P 500 had dropped 5.5% and 4.4% respectively on Thursday, but both edged higher at Friday’s US open. The figures show how quickly worries about AI spending and data-centre expansion can spill into wider markets. They do not tell us whether the AI boom is ending, a distinction investors may find inconvenient but useful.

Discuss: Should investors treat AI infrastructure spending as a market-wide risk, or are these sharp moves mostly short-term nerves?

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