Tech-Heavy Selloff Sends Nasdaq Down 400 Points

Major U.S. stock indices closed lower across the board on the 13th (local time). The Nasdaq Composite plummeted 398.69 points to close at 23,195.17, marking a decline of 1.69%. The S&P 500 index fell 73.59 points to 6,827.41 (down 1.07%), while the Dow Jones Industrial Average dropped 245.96 points to finish at 48,458.05.

Technology and growth stocks bore the brunt of the selling pressure, with the Nasdaq suffering the steepest decline. The S&P 500 fluctuated between 6,801.79 and 6,899.85 during the session, clearly reflecting investors' risk-averse sentiment.

AI Bubble Concerns and Geopolitical Risks Emerge

The Wall Street correction stemmed from two key concerns. First is the potential overheating of artificial intelligence (AI)-related stocks. Caution has spread across the market that recent gains concentrated in tech stocks may not be supported by actual profitability.

Second is rapidly escalating geopolitical tensions. President Donald Trump's remarks suggesting the possibility of all-out war with Venezuela have raised concerns about Latin American risks. Simultaneously, worries about military conflict with Russia are growing in Europe.

NATO Secretary General Mark Rutte warned, "Russia has brought war back to Europe, and we must prepare for war on a scale our grandparents endured." The simultaneous emergence of war risks on both sides of the Atlantic dampened investor sentiment.

Interest Rate Concerns Resurface, Profit-Taking Emerges

Technically, renewed concerns about interest rates fueled the stock decline. Amid continued uncertainty about the Federal Reserve's monetary policy direction, the perception has spread that high valuations of tech stocks are vulnerable to interest rate volatility.

Additionally, substantial profit-taking emerged from major indices that had shown record gains recently. The Dow moved between 48,334.10 and 48,886.86 during the session, falling more than 500 points from its high.

Dollar Mixed, Strengthens Against Yen

In foreign exchange markets, the dollar showed mixed performance. EUR/USD rose 0.04% to 1.1742, while USD/JPY climbed 0.17% to 155.84, demonstrating the continued divergence in monetary policies between the U.S. and Japan.

The British pound fell 0.11% against the dollar to 1.3368, while the Australian dollar (AUD/USD) declined 0.20% to 0.6650 amid weak commodity prices. The Canadian dollar (USD/CAD) remained flat at 1.3769.

Global Markets Also Decline, Asia Holds Up Better

Most major overseas markets also fell. Canada's S&P/TSX Composite Index dropped 133.34 points to 31,527.39 (down 0.42%), with notable weakness in energy, materials, and financial stocks.

The UK's FTSE 100 index fell 54.13 points to 9,649.03 (down 0.56%). It fluctuated between 9,639.29 and 9,761.47 during the session. Germany's DAX index also closed lower.

In contrast, Asian markets showed relatively resilient performance, partially decoupling from the global market decline.

[AI Analysis] Recovery Hinges on Easing Geopolitical Uncertainty

Whether this correction phase will remain short-term volatility or signal a trend reversal depends on whether geopolitical risks materialize. While the likelihood of Trump administration's Venezuela-related remarks leading to actual military action is low, markets tend to react sensitively to uncertainty itself.

AI bubble concerns are likely to act as valuation reassessment pressure on tech stocks for some time. Particularly as earnings season approaches and profitability verification intensifies, differentiation among individual stocks is expected to deepen.

Market volatility may expand until clear signals emerge regarding interest rate direction. However, the fact that U.S. economic fundamentals remain solid is expected to limit steep declines.