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Yulu Ao

Zhu Wenqian

A global swing over the past few days - from technology stocks to commodities and then extending to already sold down cryptocurrencies - has rattled investors, as violent cross-asset moves force markets to face a fundamental repricing in the digital economy and the broader implications of artificial intelligence.
Analysts now warn that heightened volatility across asset classes could persist for months.
The reassessment has played out through sharp declines across major benchmarks, led by a broad-based sell-off in technology shares as investors questioned valuations and weighed how AI could reshape business models over time.
In the US, the S&P 500 Index extended its third straight decline, closing 1.2 per cent lower on Thursday.
The tech-heavy Nasdaq 100 recorded its steepest three-day decline since April, dragged down by software stocks amid intensifying competitive pressures after AI firm Anthropic unveiled a new model aimed at financial research.
Beyond equities, the turbulence has spilled into other asset classes.
Spot gold has fallen 10 per cent from its peak on January 28, after suffering the sharpest drop in more than a decade last Friday. Silver has slumped nearly 37 per cent from its record high on January 28, following a 26 per cent plunge in a single session.
In cryptoassets, bitcoin briefly slipped below US$60,000, extending a rout that has erased roughly half its value since October.
The recent turbulence marks a sharp reversal from the upbeat mood at the start of the year, when Wall Street was betting on one of its longest winning streaks in years, underpinned by expectations that the AI boom would endure, economic growth would remain resilient and interest rates would fall.
“The market is finally pricing in the question it avoided all year. Not whether AI works, but who gets paid when it works,” said Stephen Innes, managing partner at SPI Asset Management. “That is the uncomfortable part. AI is not only a tool for productivity.”
Analysts said further volatility in technology stocks was likely in the coming months, as investors grappled with mounting evidence that AI could trigger a deeper reset in how software and platform companies are valued.

DeVere Group, an independent financial advisory, warned that faster and more capable AI tools could erode pricing power in legacy software models, contributing to a sharp sell-off that has wiped nearly US$1 trillion in market value from software and services equities in recent Wall Street sessions.
“Investors have moved beyond AI hype and are now rigorously testing business models against the harsh reality of what these technologies actually deliver,” said Nigel Green, CEO of deVere Group, adding that the market moves mark a broader reset in digital economy valuations.
“When machines can automate complex analytical, legal and compliance tasks that once justified premium pricing, the entire logic underpinning software valuations is up for reassessment,” he added.
The risk-off mood has also spilled into Asian markets, raising concerns over mainland China and Hong Kong equities.
The CSI 300 Index slid 1.3 per cent over the week, while the Hang Seng Index fell 3 per cent, marking their steepest weekly drops since November 21, as technology heavyweights followed the global sell-off.
Dickie Wong, executive director of research at Usmart Securities, said the correction in US AI stocks was primarily due to stretched valuations, a dynamic that could eventually affect Chinese names as well.
While China enjoys cost advantages in AI development and strong policy support, many AI and semiconductor stocks on the Star Market still trade at high multiples, Wong added.
“If sentiment towards US graphics processing units and high-bandwidth memory continues to soften, some valuation reset and selling pressure could emerge in China,” he said. “Chinese tech giants may outperform over the longer term, but they remain vulnerable in the near term amid global risk aversion.”


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Markets swing sharply across asset classes as AI forces a rethink of pricing power and long-term growth bets


Markets swing sharply across asset classes as AI forces a rethink of pricing power and long-term growth bets.


Tech sell-off rattles investors with cross-asset volatility set to linger

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Markets swing sharply across asset classes as AI forces a rethink of pricing power and long-term growth bets

Markets swing sharply across asset classes as AI forces a rethink of pricing power and long-term growth bets