Software-mageddon: AI Fears and Record US Layoffs Trigger Massive Global Market Rout. -

Global financial markets are facing a severe downturn as Asian stocks followed Wall Street’s sharp selloff on February 6, 2026. The slump was fueled by growing fears over how massive Artificial Intelligence (AI) capital expenditure might impact corporate profits, alongside alarming U.S. labor market data showing the highest January layoffs in 17 years.

I. “Software-mageddon” and the AI Question

Investors are increasingly skeptical about the “payback” on massive AI investments:

Capex Concerns: Tech giants like Amazon, Alphabet, and Microsoft have projected nearly double the AI spending for 2026 compared to 2025, raising fears of eroded profit margins.
Market Value Wipeout: The S&P 500 software and services index dropped 4.6% in a single day, losing about $1 trillion in market value since late January.

II. The Regional Impact: South Korea’s Trading Halt

The downward trend spilled into Asia, causing dramatic fluctuations:

Kospi Crash: South Korea’s Kospi plunged by 5%, forcing a temporary five-minute trading halt (sidecar) shortly after the opening bell.
Regional Slump: MSCI’s broadest Asia-Pacific index dropped by 0.9%, while Japan’s Nikkei 225 faced volatility ahead of elections.

III. Commodities & Crypto: A $2 Trillion Wipeout

Risk-off sentiment hit alternative assets hard, leading to a broader market unwind:

Bitcoin: The leading cryptocurrency fell to a low of $60,008 following a massive $2 trillion market wipeout since October 2024.
Precious Metals: Gold and silver saw steep intraday declines of 2.4% and 10% respectively, as previously considered “safe havens” were gripped by extreme volatility.

Market analysts suggest that the “pillars” of recent growth—AI, crypto, and precious metals—are now being questioned. Investors remain on edge, waiting for further economic data to see if this volatility is just a correction or the start of a more significant global downturn.