Tech market sell-off deepens amid fears over US inflation and AI debt

AI desk brief

Global risk assets sold off sharply as a hotter-than-expected US CPI print revived fears of further Fed hikes: September inflation rose to 3.7%, the fastest since May, and traders are now pricing a possible rate increase as soon as month-end. The move hit AI-linked stocks hard, with South Korea’s Kospi 200 down 8.1% and Japan’s Nikkei 225 off 4.9%, reinforcing a broader risk-off backdrop that is typically supportive for gold and other precious metals if it spills into lower yields or a weaker growth outlook.

The article also flags IMF warnings that an AI correction could threaten financial stability globally, with Europe somewhat more insulated but still lower at the open. For metals, the key transmission is the inflation/rates channel: if markets continue to price a more hawkish Fed, real yields could stay elevated and cap bullion upside; if equity stress deepens, safe-haven flows may offset that pressure.