Live Updates: AI Selloff Intensifies as Market Uncertainty Continues

South Korea’s KOSPI dropped nearly 4%, while data centre operator Elice suffered a roughly 30% decline in one of the country’s weakest IPO performances.

Strive’s SATS begins trading on Nasdaq

Strive’s (ASST) junior preferred security, SATS, which offers a high yield, has started trading on Nasdaq following its initial public offering.

The shares opened trading at $85, below the IPO price of $90. At the $85 level, the security’s 15% coupon translates into an effective yield of more than 17%.

U.S. housing starts decline as high interest rates weigh on the market

Fresh government figures provided further signs that elevated interest rates are affecting the housing sector.

Housing starts fell 5.2% in September to a seasonally adjusted annual rate of 1.221 million, well below economists’ expectations of 1.3 million. August’s figure stood at 1.288 million.

Building permits declined slightly to 1.4 million from 1.403 million in August, remaining marginally above forecasts of 1.39 million.

The latest figures followed a report from the National Association of Home Builders on Monday showing that builder confidence had dropped to its lowest level since 2012.

French-German bond spread reaches a new cycle high

French government bond spreads widened again on Tuesday. The yield on France’s 10-year OAT rose 3.4 basis points to 4.956%, while Germany’s 10-year Bund yield declined 3 basis points to 3.43%.

The gap between the two countries’ yields returned to approximately 153 basis points, near a cycle high and its widest level since Europe’s sovereign debt crisis in 2011.

European Central Bank policymaker Olli Rehn acknowledged that French bond spreads had widened “somewhat” while testifying before Finland’s parliament on Tuesday.

“All euro-area countries must bring their public deficits under control and thereby ensure their debt sustainability,” Rehn said. “This goes just as much for France as it does for Finland.”

France’s CAC 40 led declines across European equities, falling 0.8% on Tuesday. The index has lost around 12% since reaching its peak two months ago.

Bitget plans to acquire licensed Thai crypto exchange

Cryptocurrency exchange Bitget announced plans to purchase GMO-Z, a Bangkok-based licensed crypto exchange and brokerage, as part of its expansion across Southeast Asia. The companies did not disclose the transaction value.

The acquisition would be conducted through BTGT Management, in which Bitget holds an interest.

Upon completion, GMO Internet, its subsidiary GMO-Z and the exchange’s other shareholders would transfer their entire stakes to BTGT Management or an entity designated by it.

Bitget intends to make its trading platform available to Thai customers once the deal closes. Completion remains subject to regulatory approval and other conditions.

Switzerland approves its first Bitcoin ETF

Switzerland’s financial regulator, FINMA, announced that it had approved a Bitcoin exchange-traded fund for the first time, although it did not identify the fund’s issuer.

Switzerland was the first jurisdiction to approve cryptocurrency exchange-traded products (ETPs). However, rules preventing ETFs from holding a single asset meant that Bitcoin-only products had previously been classified under the broader ETP category.

FINMA has now granted an exemption allowing ETFs that hold only Bitcoin, citing the cryptocurrency’s “long trading history and particularly high trading volume compared with other cryptocurrencies.”

Market anxiety continues as AI stocks extend losses

Investor nervousness persisted as the sell-off in artificial intelligence-related stocks intensified. South Korea’s KOSPI fell nearly 4%, while data centre company Elice dropped approximately 30% in a notably weak stock market debut.

The downturn spread to U.S. pre-market trading. CoreWeave (CRWV) declined 4%, Cipher Digital (CIFR) fell 2%, and IREN (IREN) lost 3%. The Invesco QQQ ETF also moved lower, signalling broader weakness across technology shares.

Bitcoin slipped slightly over the previous 24 hours but remained above $81,000. Gold fell almost 1% to just above $4,110 an ounce, while both Brent and West Texas Intermediate crude gained another 2%.

Meanwhile, longer-dated U.S. government bonds appeared to attract investors seeking safer assets. The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.5%, suggesting some movement toward defensive investments amid continued market uncertainty.

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