Global Stocks Decline on AI Disruption Fears: Tech Selloff Hits Nasdaq, Kospi Plunges
Global stock markets experienced a notable pullback on Thursday, February 5, 2026, as investors shifted away from high-valuation technology stocks amid escalating concerns over massive AI investments and potential disruptions from emerging AI tools.
The tech-heavy Nasdaq Composite dropped 1.5%, while the Dow Jones Industrial Average rose 0.5% to close at 49,501.30, highlighting a clear rotation from growth-oriented tech names to more traditional, cyclical sectors.
AI Disruption Fears Drive Tech Selloff
A key trigger was AI startup Anthropic’s recent launch of advanced tools, including a plugin for its Claude model that automates legal, sales, marketing, and data analysis tasks. This development intensified worries that AI-native solutions could challenge established software companies’ pricing power, market share, and profit margins.
Analysts noted a broader investor exodus from tech after years of strong gains, exacerbated by lukewarm earnings responses from giants like Alphabet, ARM, and Microsoft. Questions persist about the ROI timeline for hundreds of billions in AI capital expenditures, especially for debt-heavy firms.
Experts described the move as pricing in risks of business model disruption, with investors favoring cyclical and value stocks less exposed to AI threats. Market sentiment stayed cautious, with tech losses contributing to fragile overall confidence.
The selloff impacted global indices, particularly those with heavy tech weighting. Seoul’s Kospi, up over 20% earlier in 2026 on tech strength, plunged 3.9%. Declines also hit Tokyo, Shanghai, Sydney, Wellington, Taipei, Mumbai, and Bangkok. Hong Kong recovered from early losses to finish slightly higher, while Singapore, Manila, and Jakarta gained.
In Europe, London’s FTSE 100 opened lower but closed down 0.4% at 10,361.52, with Paris and Frankfurt posting modest advances.
Precious Metals and Commodities Under Pressure
Precious metals faced renewed selling. Silver dropped sharply (over 18% in recent swings), and gold shed more than 5%. These assets had earlier surged to records on factors like a softer dollar, geopolitical tensions, central bank purchases, and Fed independence speculation, but a stronger greenback reversed some gains.
Oil prices fell over 2% intraday after confirmation of upcoming Iran-US nuclear talks in Oman, easing prior supply disruption fears that had lifted prices more than 3%.
Cryptocurrency Volatility
Bitcoin dipped to around $70,010—its lowest since November 2024—amid broader risk-asset reevaluation. The crypto is down over 40% from its October 2025 peak above $126,000, with some traders eyeing further declines below $65,000.
Standout Performers in Asia
Japanese firms bucked the trend in places. Panasonic surged as much as 15% (closing up 8.4%) after announcing expanded job cuts to 12,000 amid restructuring and reporting stronger-than-expected quarterly operating profit. Sony rallied nearly 6% intraday (finishing modestly higher) on upgraded full-year sales and profit guidance, aided by a weaker yen.
Key Market Closings (February 5, 2026)
- Tokyo – Nikkei 225: Down 0.9% at 53,818.04
- Hong Kong – Hang Seng Index: Up 0.1% at 26,885.24
- Shanghai – Composite: Down 0.6% at 4,075.92
- New York – Dow Jones: Up 0.5% at 49,501.30
- Euro/dollar: $1.1804 (slight gain)
- Dollar/yen: 157.13 (higher)
- West Texas Intermediate: Down 1.7% at $64.01/barrel
- Brent Crude: Down 1.7% at $68.27/barrel
This market shift underscores ongoing debates about AI’s long-term economic impact, with investors cautiously rotating portfolios while monitoring earnings, geopolitical developments, and monetary policy signals.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.