Bilig's Daily Brief: AI sell-off routs global markets as Trump warns Iran

A sell-off in artificial intelligence (AI) stocks gave Wall Street its worst day since April 2025 and spread across Asia on Friday, as investors weighed the prospect of tighter US rules on data centres. President Donald Trump warned that Iran could face further destruction and said a deal on Ukraine was close, while the Bank of England raised interest rates for the first time since 2023.

AI rout gives Wall Street worst day since 2025

US stocks plunged on Thursday as investors dumped AI and chip shares on fears that Democratic gains in the midterm elections could slow the build-out of data centres. The Nasdaq Composite fell 5.52% to 24,315.00, closing in correction territory more than 10% below its 6 October record. The S&P 500 lost 4.36% to 7,353.73 and the Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to 51,523.06. Nvidia fell 9.26% and the Philadelphia Semiconductor Index slid more than 12%. The 10-year Treasury yield fell to 4.84%, a two-month low, CNN reported.

Kospi trading halted as Asian stocks tumble

The sell-off spread to Asia on Friday. South Korea's Kospi fell more than 8% intraday, triggering a 20-minute trading halt, before closing 6.02% lower at 5,059.69, the Seoul Economic Daily reported. Japan's Nikkei 225 closed down 5.96% at 57,434.70, according to TradingKey. SK Hynix lost 10.44%, Samsung Electronics 6.35% and SoftBank Group 10.83%. Taiwan's benchmark index also fell more than 8% early in the session, The National reported.

Trump says Iran could face more destruction

Trump said on Thursday he might order further strikes on Iran after meeting his national security team, Axios reported. "I would rather not destroy the rest of the country, if possible, but maybe I'll have to. And you'll know soon enough," he told reporters in the Oval Office. He said a decision was coming on whether to "go further" to ensure Iran's nuclear programme could never be revived. Iran's Islamic Revolutionary Guard Corps (IRGC) said it had shot down two US drones.

Iran says more tankers hit Hormuz mines

Iranian forces said at least five tankers and a tugboat caught fire in and near the Strait of Hormuz on Thursday, several after striking mines, Al Jazeera and CBS News reported. The IRGC said on Friday that two more tankers had hit mines. The claims have not been independently confirmed. Oil prices rebounded on the attacks: Brent crude settled up $3.67, or 3.88%, at $98.29 a barrel on Thursday, and US West Texas Intermediate (WTI) rose 2.72% to $90.52, Reuters reported, after falling more than 8% on Wednesday.

Trump says Ukraine deal near after envoy talks

Trump said on Thursday that a Russia-Ukraine settlement was close, after meeting Kirill Dmitriev, an envoy of Russian President Vladimir Putin, at the White House. "It's going to involve more than Ukraine, and I could even say it might involve all of Europe," he told reporters in the Oval Office, without giving details. Earlier, First Lady Melania Trump hosted Russian and Ukrainian officials to mark a six-day local truce she helped broker in Oleshky, Al Jazeera reported.

Bank of England raises rates to 4%

The Bank of England raised Bank Rate by a quarter point to 4% on Thursday, its first increase since August 2023, as energy prices pushed up inflation. The Monetary Policy Committee voted 8 to 1, with one member backing a half-point rise, and forecast that inflation would reach about 5% by mid-2027, CNBC and MoneyWeek reported. Governor Andrew Bailey said the move should not be seen as "the first in an inevitable long sequence of hikes", but added it was unlikely to be the last unless the Middle East conflict was resolved.

Eisenkot wins most backing to lead Israel

Former army chief Gadi Eisenkot won the support of parties holding 67 of the Knesset's 120 seats to form Israel's next government, President Isaac Herzog said on Thursday, against 46 for Prime Minister Benjamin Netanyahu. Herzog said the results of his consultations "appear clear" but that he would hold further talks before assigning the mandate on Sunday, the Times of Israel and Anadolu Agency reported. The Arab-led Ra'am party and the Joint List backed Eisenkot.

France arrests 448 in cost-of-living protests

About 575,000 people marched across France on Thursday in nationwide strikes over wages and living costs, including 65,000 in Paris, the Interior Ministry said. The CGT union put turnout at nearly 1.6 million. Police made 448 arrests and 53 officers were injured, according to the ministry's tally at 6 p.m. Euronews reported that the government was backing an austerity budget, while CNN described the day as the largest protests in France in years.

Paraguay's president resigns over bank collapse

Paraguayan President Santiago Peña resigned on Thursday shortly before the lower house voted to impeach him over the collapse of the digital lender Ueno Bank, Euronews and AP reported. The central bank took over Ueno on Tuesday after its capital fell below half the legal minimum. Close to three million customers lost access to their accounts, and prosecutors have charged 27 people. "I want to apologise to the people if at any point I failed," Peña said. Vice President Pedro Alliana takes office.

Russell Brand found guilty of rape

A London jury found actor and comedian Russell Brand guilty on Thursday of one count of rape and three counts of sexual assault, Al Jazeera and the Washington Post reported. He was acquitted of two other rape charges and one count of attempted indecent assault. Six women testified at Southwark Crown Court. Brand, who denied the charges, was taken into custody after the verdict. Judge Joel Bennathan said he would be sentenced on Monday.

Turkey ratifies defence pact with Saudi Arabia

Turkey's parliament on Thursday ratified the Mecca Joint Defence Agreement with Saudi Arabia and Pakistan, under which an attack on one party is treated as an attack on all, Arab News and the Jerusalem Post reported. Lawmakers voted 279 to 119, according to Anadolu Agency. The vote clears the way for Turkish military support to Saudi Arabia, which faces attacks by Yemen's Houthi movement.