Asian Stocks Drop After Tech-Led Wall Street Selloff; Alphabet, Tesla Plunge
Asian equities fell as a tech selloff on Wall Street spilled over, with the MSCI Asia Pacific Index down 0.8% following a 1.2% drop in the S&P 500 and a 1.9% decline in the Nasdaq 100. Alphabet sank 7.1% on higher capex forecast and Tesla tumbled 15% on disappointing profits.
Wall Street's tech sector suffered a sharp selloff on Tuesday, dragging major indices lower. The S&P 500 fell 1.2% while the Nasdaq 100 dropped 1.9%, as investors began questioning the returns on massive AI spending. The rout extended into Asia, with the MSCI Asia Pacific Index sliding 0.8%.
Alphabet shares plunged 7.1% after the company issued a higher-than-expected capital expenditure forecast, raising concerns about AI investment efficiency. Tesla slumped 15% following disappointing quarterly earnings that missed analyst estimates.
The selloff highlights growing skepticism toward heavy AI investment and tech valuations, with broader market sentiment turning cautious.
Source: First Squawk