Global Market Experiences "Circuit-Breaker" Crash, December Rate Cut in Doubt Amid AI Bubble Theory Leading to Multiple Risks Emerging

BlockBeats News, November 5th. This morning, the crypto market suffered a heavy blow, with the total market value plunging by 4.8% in the past 24 hours to $3.455 trillion. Bitcoin fell below $100,000 in the early morning, and Ethereum touched nearly $3,000.

On Tuesday, the US stock market closed with the Dow Jones Industrial Average initially down by 0.53%, the S&P 500 down by 1.17%, and the Nasdaq down by 2%. Tesla (TSLA.O) fell by 5%, Nvidia (NVDA.O) by nearly 4%, MicroStrategy (MSTR.O) by over 6%. US and European stock index futures also continued to decline. The Euro Stoxx 50 index futures fell by over 1%, the Germany DAX index futures by 1%, and the UK FTSE index futures by 0.4%.

The market is currently facing several risk events, with concerns about an artificial intelligence bubble emerging, and doubts beginning to arise about a rate cut in December. Institutional analysis indicates that the US Supreme Court beginning to consider Trump's tariff powers is another potential source of market turmoil. ADP expects to add 22,000 jobs in October, following a reduction of 32,000 jobs in September.

On Wednesday morning, Asian stock markets followed the overnight sell-off in the US, as investor concerns about high market valuations weakened confidence. The South Korean stock market led the decline with a drop of over 6%, as the KOSPI index fell below the 4,000-point mark. This decline resulted in a cumulative two-day drop of over 7%, marking its worst performance since August 2024. After falling 5% in Korea Composite Stock Price Index 200 futures, a circuit breaker was triggered for the KOSPI index. The Nikkei 225 index fell below 50,000 points for the first time since October 27th, dropping by 3.7% intraday. The Taiwan Weighted Index opened down by 1.67% on Wednesday. The Hang Seng Index in Hong Kong opened down by 0.97%, and the Hang Seng TECH Index opened down by 1.75%. In A-shares, the Shanghai Composite Index opened down by 0.95%, the Shenzhen Component Index opened down by 1.68%, and the ChiNext Index opened down by 2.08%.