Markets experienced a significant selloff on September 29, 2026, with the Nasdaq Composite index falling 2.6% in its worst day since early July, driven by renewed concerns over artificial intelligence spending sustainability [1]. The tech rout reflects broader investor skepticism about the capital requirements and returns associated with AI infrastructure buildout, despite continued strong demand signals from major players in the sector.
While the overall tech sector faced headwinds, individual companies showed divergent performance. SK Hynix shares rebounded 2.6% in Seoul after scrapping plans for a U.S. listing of its Solidigm unit due to regulatory concerns around dual-listing rules, though the company stated it would continue exploring financing options for a new U.S. fabrication facility [1]. Meanwhile, Nvidia CEO Jensen Huang indicated robust demand, telling CNBC at GTC in Berlin that neocloud demand is "off the charts" and that "the demand of the capital is much greater than the availability of the capital," though he expects this gap to be resolved [1].
Elon Musk's business empire demonstrated mixed financial performance and significant political activity. SpaceX reported a $561 million unrealized gain on its stake in Boring Co. in the third quarter, boosting net income to approximately $4.4 billion, though the company still shows a $413 million net loss for the first nine months of the year [1]. On the political front, Musk has committed approximately $366 million to the current election cycle, including $276 million since July, primarily to maintain Republican control of Congress, potentially making him the largest single donor in this year's races [1]. Additionally, President Trump reportedly called Musk requesting he lift restrictions on Starlink's use in Ukraine, with Trump stating access has been restored, though Ukrainian President Zelenskyy indicated speeds have not fully recovered [1].
Beyond technology stocks, broader market concerns include credit market stress affecting AI companies financing data center projects and heavily indebted governments, as investors grow increasingly wary of borrowing risks [1]. In Japan, core inflation rose to 2.1% in September from 1.7% in August, marking the highest level of the year and exceeding the Bank of Japan's 2% target, with the central bank expected to hold rates at next week's meeting though a December hike remains possible [1].
CONCLUSION
The tech sector's 2.6% decline reflects investor concerns about AI spending sustainability despite strong underlying demand, creating a bifurcated market where established players like Nvidia show resilience while broader indices struggle [1]. Musk's diversified business portfolio demonstrates both financial strength through SpaceX's gains and significant political engagement, though regulatory scrutiny of his government contracts persists [1]. The combination of AI credit market stress and rising inflation pressures globally suggests near-term volatility may continue in technology and growth-oriented sectors.