WS #15903
Global equities are selling off sharply, with the Nikkei down 4.77% and US Treasuries rallying as yields drop. The selloff is concentrated in technology, exacerbated by TSMC's report of backend capacity shortages for AI chips. This supply bottleneck is pressuring downstream AI hardware makers like Nvidia and Apple, despite TSMC's strong earnings beat. The market is interpreting the shortage as a sign of demand fragility or execution risk, leading to a broad de-rating of high-multiple tech names.
Tech Selloff and AI Supply Constraints
Global equities are selling off sharply, with the Nikkei down 4.77% and US Treasuries rallying as yields drop. The selloff is concentrated in technology, exacerbated by TSMC's report of backend capacity shortages for AI chips. This supply bottleneck is pressuring downstream AI hardware makers like Nvidia and Apple, despite TSMC's strong earnings beat. The market is interpreting the shortage as a sign of demand fragility or execution risk, leading to a broad de-rating of high-multiple tech names.