Asian stocks fall as tech sector faces AI spending concerns
Most Asian markets dropped after Wall Street's tech sell-off, with investors worried about heavy spending on artificial intelligence. Recent hints from the US Federal Reserve about pausing interest rate cuts have also dampened hopes for a year-end rally. Concerns are growing that the tech sector's surge may be a bubble, especially after disappointing earnings from major firms. Key US inflation data expected on June 5, 2025 could influence future market moves.
What we know
- Asian markets followed Wall Street lower after tech stocks tumbled on June 5, 2025.
- Investor anxiety is rising over the vast sums invested in AI and whether returns will materialize soon.
- Oracle's $10 billion data centre project was thrown into doubt after Blue Owl pulled out, adding to sector worries.
- Major tech firms like Oracle, Broadcom, Nvidia, Alphabet, and AMD saw significant share price drops.
- European markets were mixed, while oil prices climbed following US military action in the Pacific.
