Global stocks plunge on tech rout and Korean trading halt

Friday 06 February 2026 - 09:20

By: Dakir Madiha

Global stocks plunge on tech rout and Korean trading halt

World markets tumbled Thursday as a brutal U.S. tech selloff extended into a third day, pushing the S&P 500 into negative territory for 2026 and dragging Bitcoin to levels unseen in over a year. The Dow Jones Industrial Average shed 593 points or 1.2%, while the S&P 500 also dropped 1.2%. The Nasdaq Composite fell 1.6%, its worst two-day decline since April's tariff turmoil, per The Wall Street Journal. Asian trading Friday saw the rout continue, with South Korea's Kospi triggering a brief trading halt after plunging over 5%.

The rout intensified after Amazon signaled plans for about $200 billion in 2026 capital spending, up 56% from last year, sending its shares down around 10% after hours, according to CNBC. This follows Alphabet's earlier disclosure of $175-185 billion in planned investments nearly double last year's figure. "The 'spend now, profit later' era is over," one market observer noted, as investors grow skeptical on when massive AI infrastructure outlays will yield returns. Microsoft shares have now fallen over 27% from their October peak, entering bear market territory. The tech-heavy Nasdaq 100 erased more than $1 trillion in market cap this week alone.

Bitcoin posted its sharpest one-day drop since 2022, sinking to $60,033 Friday morning in Asia before a slight rebound, Bloomberg reported. The cryptocurrency has lost about a third of its value year-to-date, trading roughly 50% below its October record of $126,272.76. The slide deepened after Treasury Secretary Scott Bessent testified to Congress on February 4, stating the federal government lacks authority to buy cryptocurrencies with taxpayer funds or direct banks to bail out crypto firms.

Labor market data fueled investor jitters. A Challenger, Gray & Christmas report showed U.S. employers announcing 108,435 job cuts in January the highest monthly total since 2009. Initial jobless claims unexpectedly rose to 231,000. Wall Street's "fear gauge," the VIX, climbed to 21.77, its 2026 high, hinting at lingering volatility. Investors fled to safe havens, boosting Treasury bond prices as funds flowed into government debt. "Volatility communicates like an upset stomach: don't ignore it," WEBs Investments CEO Ben Fulton told MarketWatch. "If you think you've weathered the storm, we're probably not done yet."