Global Stocks Slide as Chip Selloff Pressures Technology Sector

Global equity markets declined on Thursday as a broad sell-off in semiconductor stocks weighed on technology shares, driving the sector to its steepest one-day decline since April last year.

European markets traded lower, with the STOXX 50 extending losses, while Japan’s Nikkei 225 fell 4%, leading declines across Asia. US equity futures also pointed to a weaker opening on Wall Street.

The downturn followed renewed pressure on semiconductor companies as investors reassessed valuations after an extended rally fueled by optimism surrounding artificial intelligence.

Technology stocks have been among the strongest-performing sectors over the past year, leaving the industry more vulnerable to shifts in expectations for future growth and investment spending.

The weakness in chipmakers spread across major global markets, weighing on broader technology indexes and contributing to declines in benchmark equity indices in Europe, Asia, and the United States.