World share markets steadied on Monday after a painful end to October, when investors sold technology shares heavily over doubts about the huge sums being spent on artificial intelligence. The calmer start does not mean the worry has gone away. Traders now await two big tests: the United States midterm elections on Tuesday, and results from Apple, due after American markets close on Monday.
On Friday, the sell-off was sharp. The Nasdaq, the American index packed with technology companies, fell 2.9 percent, or 747.73 points, to 25,437 points — its worst single day since June. The broader S&P 500 fell 1.8 percent to 7,580.07, and the Dow Jones fell 1.1 percent to 51,770.31.
What is the AI worry?
Artificial intelligence, or AI, means computer systems that can learn from data and carry out tasks such as writing and coding. The world’s largest technology companies have spent enormous amounts building the data centres and chips needed for AI, and investors now want proof that this spending will turn into profit.
That proof has been slow to arrive. Disappointing results from some large technology firms helped push the Nasdaq down 5.3 percent in October, its worst month since March 2025. Reuters reported that the Nasdaq-100, a basket of the largest non-financial companies on the Nasdaq, lost more than $2.5 trillion in market value during October and came close to what traders call a correction — a fall of 10 percent or more from a recent peak.
A mixed picture around the world
Monday’s trading was mixed rather than a strong recovery. In Asia, Japan’s Nikkei 225 slipped 0.3 percent to 63,081.86, while South Korea’s Kospi rose 2.2 percent to 5,859.08 and China’s Shanghai Composite gained 1.1 percent to 3,638.03. In early European trading, Britain’s FTSE 100 edged down 0.1 percent to 10,721.94, while Germany’s DAX and France’s CAC 40 each added 0.1 percent.
American futures — contracts that point to where markets may open — were higher. Dow futures rose about 0.5 percent, S&P 500 futures about 0.5 percent, and Nasdaq 100 futures about 0.9 percent in early Monday trading.
What it means for Pakistan
Pakistan’s own market does not move in lockstep with Wall Street, but global mood still matters. When American technology shares fall sharply, investors often become more cautious, and money can flow out of riskier markets, including emerging markets such as Pakistan. That can put pressure on the rupee and on foreign investment.
There is also a link through interest rates. Investors are watching Friday’s American jobs report and signals from the US Federal Reserve, America’s central bank, for clues about whether it will raise interest rates in December. Higher American rates tend to strengthen the dollar and make borrowing costlier worldwide. For Pakistani readers, the practical point is simple: if Apple beats expectations and the election result is clear, calm may return. If not, another bout of selling cannot be ruled out.
Sources: Reuters, Associated Press. Written in our own words for information only — not investment advice.