Deutsche Bank: AI Selloff Triggers Broad Risk-Off Move Across Global Markets - FJElite

US equities suffered a sharp selloff led by AI-exposed stocks, with the Philadelphia Semiconductor Index down 12.25%, its worst session since March 2020. The S&P 500 fell 4.36%, its biggest decline since the April 2025 Liberation Day volatility, while the Nasdaq dropped 5.52%. The VIX jumped 11.6 points to 28.2, its highest since March, as risk aversion spread across markets. Brent also rebounded 3.88% and the Franco-German 10-year spread widened, adding to the broader stress.

The selloff carried into Asia, with the Nikkei down 6.28% and now more than 20% below its June peak, while South Korea’s KOSPI fell 4.39% after triggering a circuit breaker earlier in the session. Losses elsewhere in Asia were more contained. US futures have stabilised somewhat, with Nasdaq futures up 0.77%, although S&P futures remain slightly lower and European futures are under pressure after missing the final leg of the US selloff.