European and Asian stock markets experienced a downturn on Thursday as concerns over the future growth of major tech firms triggered a global market sell-off.
The pan-European Stoxx 600 decreased by 1.3%, reaching its lowest point since May, due to significant declines in several key companies including Dutch chipmaker ASML (down 2.75%), Germany’s Infineon Technologies (5.5% drop) and Switzerland's STMicroelectronics (a notable 12.8% fall).
The selling began overnight in the US, where the Nasdaq, which focuses on tech companies, saw a decline of 3.6%, its most significant decrease since 2022. The Nasdaq 100 index lost approximately $1tn (£776bn) in value as investors expressed caution over previously soaring AI-related stocks such as Nvidia, Tesla and Alphabet Inc., the parent company of Google.
Shares declined for several prominent companies within this group: Nvidia saw a 7% decrease, while shares of Alphabet dropped by 5%, Microsoft fell by 3.5%, Apple lost ground at 3%, and Meta Platforms (formerly known as Facebook), which was led by its CEO Mark Zuckerberg, experienced a decline of 5.6%.
Tesla Inc., under the leadership of its founder Elon Musk, reported its largest loss since 2020 at -12% following a reported profit drop of 45%, along with delayed unveiling plans for self-driving and humanoid robot technology. Despite previous enthusiasm surrounding these innovations, investors grew skeptical as Tesla's sales growth slowed down.
The downturn continued in Asia, where tech companies also witnessed a decrease, including South Korean electronics giant Samsung (down 2%) and Japanese technology firm Sony (down by 5%). Japan's Nikkei index closed lower by 3%.
Despite the market decline, Dan Coatsworth from AJ Bell noted that it may be an appropriate correction in view of recent highs and significant movements for large companies.
Read next
"Trump's new trade tariffs prompt urgent response from multiple nations"
Leaders from more than 60 nations are rushing to secure trade agreements with the U.S. following new tariff measures introduced by Donald Trump, which have caused widespread concern.
The sudden changes have sparked market instability and fears over employment in some of the world’s most vulnerable economies, with
"Poll: Americans Pin Rising Living Costs on Trump"
Americans are facing financial difficulties, dealing with debt and higher living expenses, and many hold the Trump administration and corporate interests responsible for worsening economic conditions for working families, a recent survey shows.
Six in 10 respondents blame the Trump administration for increasing their cost of living, according to a
"UK Supreme Court to rule on car finance secret commission case"
UK Supreme Court to Rule on £44bn Car Finance Dispute
The UK’s highest court is set to issue its decision on the £44bn car finance dispute, which could determine whether millions of drivers are eligible for compensation due to unfair lending practices.
The Supreme Court’s ruling, expected after