By Boluwatife Oshadiya| June 25, 2026
Key Points
- Technology-led selling pushed the NASDAQ down 2.21% and the S&P 500 lower by 1.44%
- Investors are reassessing whether massive AI infrastructure spending can generate expected returns
- European and Asian markets recorded mixed performances amid shifting global risk sentiment
Main Story
Global equity markets came under pressure on Wednesday as a broad selloff in artificial intelligence-related stocks dragged major US and European benchmark indexes lower.
According to a market update from First National Bank (FNB), investors have become increasingly cautious about the pace of spending on AI infrastructure, particularly by large technology firms known as hyperscalers. The reassessment triggered widespread weakness across semiconductor, memory-chip and technology stocks.
The technology-heavy NASDAQ Composite Index declined 2.21%, while the S&P 500 fell 1.44%. The Dow Jones Industrial Average was comparatively resilient, slipping just 0.09%.
European markets also closed lower, with the Euro Stoxx 50 losing 1.28%. The FTSE 100 fell a modest 0.09%, supported by gains in defensive sectors such as healthcare and consumer staples.
Asian markets delivered mixed results. Hong Kong’s Hang Seng Index edged 0.04% higher as bargain hunters returned to the market, while Australia’s ASX 200 gained 0.23%. Japan’s Nikkei 225, however, fell 1.72% amid continued weakness across technology stocks.
FNB said the Johannesburg Stock Exchange could experience a relatively stable opening session after Tuesday’s selloff, supported by stronger performances across parts of Asia.
Investor sentiment was also influenced by commodity market weakness, with gold and platinum prices extending recent declines, creating additional pressure for mining-related stocks.
What’s Being Said
“A sharp reversal in sentiment around AI infrastructure spending drove a coordinated selloff across global equities,” First National Bank said in its market commentary.
Market strategists say investors are increasingly demanding evidence that multi-billion-dollar AI investments will translate into sustainable earnings growth rather than long-term capital expenditure burdens.
What’s Next
- Investors will closely monitor earnings guidance from major technology companies for evidence of AI-related revenue growth
- Markets are awaiting key US inflation and economic data that could influence Federal Reserve policy decisions
- Traders will continue assessing whether the recent technology-sector weakness represents a correction or a broader market trend
The Bottom Line: The AI investment theme remains one of the most powerful drivers of global markets, but investors are increasingly scrutinising whether spending levels can be justified by future profitability.
