Nasdaq Drops 2.86%, Dow Falls 1.09% on Tech Selloff; Germany October CPI Eases to 2.8%

The Quick Take

• The Nasdaq fell 747 points (2.86%) to 25,437 and the Dow Jones dropped 572 points (1.09%) as AI-related stocks led selling.
• S&P 500 declined 1.82% to 7,580, with Amazon and Intel among the most cited names driving the tech-led correction.
• Germany's October CPI moderated to 2.8% year-on-year, down from September's 3.3%, aided by a temporary fuel tax reduction.
• German inflation came in below market expectations of 3.1%, supporting the case for ECB rate accommodation.

US equity markets fell sharply as technology stocks led a broad selloff driven by earnings disappointments from major AI and semiconductor names. The Nasdaq Composite declined 2.86% to 25,437 — the sharpest single-session fall in several months — while the Dow Jones Industrial Average fell 1.09% to 51,770. Amazon and Intel were among the most cited names driving the tech-led correction, with investor concerns centred on AI infrastructure spending returns and chipmaker competitive pressures. The scale of the Nasdaq decline reflects the elevated weight of AI-related equities in growth-oriented indices globally.

Korea's financial markets and technology sector face direct spillover from the US tech selloff, given the country's deep integration in the global semiconductor supply chain. Korean chipmakers Samsung Electronics and SK Hynix are closely watched proxies for AI chip demand; a US tech correction signals a reassessment of near-term AI hardware orders. Simultaneously, Germany's October CPI moderating to 2.8% — below the 3.1% consensus forecast — provides a tailwind for the ECB's case to pause or cut rates, which supports European bond markets and reduces EUR/USD downside pressure from diverging rate paths.

The key macro variable is whether the US tech selloff's follow-through confirms a sustained rotation out of growth equities or represents a one-day sentiment flush. For Korean investors, the November US CPI print and FOMC meeting will be decisive. On the European macro side, the German CPI deceleration — supported by a temporary fuel tax cut rather than structural demand destruction — will be scrutinised for persistence. Watch ECB governing council commentary for signals on whether the German inflation data moves the dial on December rate decisions. Korean October export data will also show whether AI demand deceleration is beginning to affect Korea's tech manufacturing supply chain.

Synthesized from 3 sources.