Quick Take Big Tech’s 2026 capital spending plans have blown past expectations , sparking a sharp market reaction. Investors still believe in AI — but they now want clear proof of returns , not just long-term promises. The CapEx Shock Across recent earnings, mega-cap tech companies pushed 2026 CapEx from “already massive” to “historically extreme” : Meta Platforms : US$115–135B vs US$110B consensus Stock jumped ~10% initially, but gains faded → investors want evidence, not AI rhetoric Microsoft : US$140–150B vs US$109B consensus Stock fell ~10% → ROI timing now under scrutiny Alphabet : US$175–185B vs US$115B consensus Shares slipped as markets adjusted to a more capital-intensive Google Amazon : ~US$200B vs US$146B consensus Stock dropped ~11% after-hours on cash flow concerns What Investors Are Really Worried About This is no longer about believing in AI — it’s about financial optics and timing . Key Market Fears CapEx is rising fa...
Simple Summary
World stocks extended losses for a third day, heading for the worst week since November
Tech and AI-linked stocks led the sell-off, with software shares hit hard
Silver and cryptocurrencies plunged, then staged shaky rebounds
Markets are beginning to price in higher odds of a Fed rate cut
What’s Driving the Market Rout
Global markets stayed under pressure as volatility ripped through equities, precious metals and cryptocurrencies.
MSCI All-Country World Index slipped 0.1%, on track for its worst week since mid-November
Asia-Pacific ex-Japan stocks fell 0.8%
S&P 500 e-mini futures: -0.3%
Nasdaq e-mini futures: -0.5%
The selling followed a sharp Wall Street rout, where fears are mounting that new AI models may erode software profit margins, just as US labour-market data weakens.
AI Optimism Meets Reality
Investors are rotating away from crowded AI trades.
“The market is starting to ask: what is the payback?” said Prashant Bhayani of BNP Paribas Wealth Management.
Key pressure points:
US layoffs in January hit a 17-year high
The S&P 500 turned negative for the year
The S&P software & services index plunged 4.6%, wiping out ~US$1 trillion in value since late January
The sell-off has been dubbed “software-mageddon”
Silver and Crypto: Panic, Then Pause
Speculative assets were hit especially hard:
Bitcoin fell below US$60,000, before rebounding to ~US$64,600
Ethereum jumped 3% after a steep slide
Silver plunged as much as 10%, then clawed back to US$71.61
Gold rebounded 0.9% to US$4,815
China’s UBS SDIC Silver Futures Fund was briefly suspended after hitting daily loss limits, highlighting forced unwinds in crowded trades.
Key theme: Aggressive deleveraging, not a slow repositioning.
Asia: Volatile but Selective
South Korea’s Kospi triggered a trading halt after a 5% drop, later trimming losses to 2.3%
Japan’s Nikkei 225 rose 0.3%
China’s Shanghai Composite edged up 0.1%
Indonesia stocks slid, after Moody’s cut its outlook, days after MSCI-related turmoil
Fed Rate-Cut Bets Rise
Market stress is reviving expectations of monetary easing by the Federal Reserve.
Probability of a March rate cut jumped to 22.7%, from 9.4% a day earlier
US 10-year Treasury yield fell to 4.18%
Dollar index steady at 97.92
Japanese yen strengthened, as investors sought safety
Bottom Line
Markets are undergoing a violent reset.
Crowded AI trades are being unwound, speculative assets are flushing out leverage, and investors are reassessing growth, profitability, and liquidity all at once.
The key question now: Is this just a correction — or the start of a deeper regime shift away from AI-driven exuberance?
Key Takeaways
Tech and software stocks are leading the downside
Silver and crypto volatility signals forced deleveraging
Fed cut expectations are rising again
Rotation into defensives is accelerating
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