Global market news on October 23 was dominated by a sharp technology sell-off, rising concerns over artificial intelligence (AI) spending and increased demand for safe-haven assets. The Nasdaq Composite fell 2.6% on Thursday, marking its biggest daily decline since June, while global corporate bond yield premiums reached their widest level since May 2025.
The market moves came as investors questioned whether large AI investments would generate sufficient returns. Meta Platforms shares dropped 7%, while the Philadelphia Semiconductor Index plunged 6.7%. The Dow Jones Industrial Average edged up 0.02%. Selling pressure also spread to corporate debt markets as concerns about AI-related borrowing and geopolitical tensions increased investor caution.
AI Concerns Hit Technology Stocks and Credit Markets
Global corporate bond yield premiums climbed to 129 basis points, their highest level since May 2025. Asian high-rated corporate dollar bond spreads also reached their widest level since July 2025. Investors are increasingly concerned that companies financing AI expansion through borrowing may struggle to generate expected profits quickly enough.
In the semiconductor sector, South Korea’s SK Hynix halted plans for a US listing of its flash-memory subsidiary, Solidigm, and suspended its pre-IPO fundraising process. The decision followed shareholder opposition, regulatory scrutiny and concerns about market conditions. SK Hynix said Solidigm still requires a new US chip plant and that direct investment remains an option.
Meanwhile, a SemiAnalysis report published on October 21 said China’s Huawei and DeepSeek were working together on AI computing. The report projected that DeepSeek could run primarily on Huawei’s Ascend chips by 2027–28, although this remains a forecast.
Yen and Government Bonds Gain as Investors Seek Safety
The Japanese yen strengthened 0.4% to 156.08 per dollar in Tokyo trading, reaching a one-month high. Japan’s 10-year government bond yield fell 9 basis points to 2.79%, while its 20-year yield declined 5.5 basis points. Demand for US Treasuries also increased as technology shares sold off.
Gold prices eased and were on course for their largest weekly decline in more than four months. Higher oil prices and stronger US economic data reinforced expectations that interest rates could remain elevated. Spot silver fell 2% intraday to $53.48 per ounce.
Oil Shipping Costs and India’s Wheat Outlook Face Pressure
The International Energy Agency (IEA) reported that supertanker freight costs from the Gulf to Asia exceeded $37 per barrel by mid-October, more than five times prewar levels. Disruptions around the Strait of Hormuz, rerouted trade and attacks on Saudi Arabia’s East-West pipeline on September 11 contributed to the pressure.
In India, concerns emerged over wheat production following a monsoon season that ended 13% below normal. The World Meteorological Organization’s October 21 outlook forecast tropical Pacific temperatures around 3.8°C above normal between November and January. The WMO warned that excessive winter heat could reduce wheat yields, while limited water reserves could add pressure during the rabi season. RBI Governor Sanjay Malhotra also warned of agricultural risks from a weak monsoon combined with a strong El Niño.
Other developments included US President Donald Trump’s executive order targeting housing costs, a 180-day review of planned wind turbine tariffs, and the invocation of the Defense Production Act to support domestic oil-sector capacity. Separately, Merck and Moderna reported Phase 3 results showing that their personalised cancer vaccine combined with Keytruda reduced the risk of cancer recurrence or death by 42% compared with Keytruda alone, even as both companies’ shares fell.
