Muhammad Basheer HotoroAsian stock markets fell on Tuesday as investors assessed the recent surge in technology shares on Wall Street amid growing fears that a market bubble may be forming.
The rally has been fueled by multi-billion-dollar investments in Artificial Intelligence (AI), which have pushed the valuations of major tech firms to record highs. Analysts say this growth has also been supported by easing trade tensions and expectations that the U.S. Federal Reserve will continue to cut interest rates.
However, experts warn that the gains are heavily concentrated in a few large tech companies, which could make the market vulnerable to a sudden correction.
OpenAI, the creator of ChatGPT, recently signed a $38 billion deal with Amazon’s AWS, adding to its list of major partnerships with firms like Oracle, AMD, and Nvidia.
On Wall Street, the Nasdaq and S&P 500 rose, while the Dow Jones slipped. Across Asia, markets in Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, and Mumbai all declined, though Manila, Jakarta, and Wellington saw slight gains.
In Europe, London, Paris, and Frankfurt opened lower.
