Wall Street plunges in AI 'bloodbath' – latest updates

Wall Street tech stocks suffered a broad sell-off dubbed a 'bloodbath' by analysts, with the Nasdaq Composite dropping 1.9% in its worst single-day decline in four weeks. Asian markets led the rout: Japan's Nikkei 225 fell 4% and Taiwan's Taiex plunged 6.5%, with TSMC sliding 7.3% despite reporting record Q2 profits.

Why it matters: Investor skepticism is driven by soaring AI spending, fears of overcapacity in semiconductors, and new competition from China's Moonshot AI, while Middle East tensions have pushed crude above $85 per barrel.