AI trade rout: Are global financial markets showing signs of a bigger crisis? – CNBC TV18

A rout in technology stocks as confidence in the AI trade falters could test the resilience of global financial markets from New York to Taipei.

The tech-heavy Nasdaq 100 rose nearly 2% on Friday, clawing back some of Thursday’s more than 6% plunge – but traders remain on edge.

Policymakers have long warned of the risks from an AI boom unraveling. Investors and regulators are keeping a close watch on market stress indicators, with some flashing amber, although not yet red.

Here’s a look at how key measures are faring:

Wall Street’s fear gauge, the VIX index of US stock market volatility, rose to over 28 on Thursday, its highest since late March. It was holding close to that level on Friday.

The increase is relatively contained compared to the post-April 2025 “Liberation Day” market jump and the August 2024 market selloff.

Still, the VIX has surged more than 40% this week.

The European equivalent hit its highest level since May on Friday.

“It’s still early days,” said Idanna Appio, a portfolio manager at First Eagle Investments. “My concern would be if we see more spikes in volatility, more stress, real issues with the ability to access markets. Those will…

Original source: https://www.cnbctv18.com/technology/