Asian Stocks Plummet Amid Valuation Fears as Wall Street Slump Deepens

Global stocks extended losses on November 4, 2025, after suffering their steepest drop in nearly a month, with concerns over elevated valuations weighing heavily on investor sentiment. The Dow Jones Industrial Average plummeted 2.5% to 32,400.23, while the S&P 500 fell 2.8% to 3,840.51 and the Nasdaq Composite dropped 3.4% to 11,350.19. The losses were led by tech shares, with the tech-heavy Nasdaq 100 index plummeting 3.5% to 12,200.21. The index's decline was exacerbated by the late trading slump in Super Micro Computer Inc.'s shares, which fell 12.1% to $23.45. Advanced Micro Devices Inc. also failed to impress investors, with its revenue forecast coming in below expectations, sending its shares down 8.5% to $65.19. The sell-off in tech shares was a major contributor to the decline in the S&P 500, which fell 2.8% to 3,840.51. The index's decline was led by the technology sector, which fell 3.9% to 2,444.19. The sector's decline was the largest among all 11 sectors in the S&P 500. The losses in global stocks were also driven by concerns over elevated valuations. The S&P 500's price-to-earnings ratio, a key metric used to evaluate the market's valuation, stood at 23.4, up from 20.6 at the start of the year. The Nasdaq 100's price-to-earnings ratio stood at 28.5, up from 24.5 at the start of the year. The sell-off in global stocks also had a significant impact on the bond market. The yield on the 10-year U.S. Treasury note fell to 1.85%, down from 1.92% at the start of the day. The decline in yields was a sign that investors were seeking the safety of haven assets, such as bonds, in the face of market volatility. The losses in global stocks were also reflected in the currency market, with the Japanese yen strengthening against the U.S. dollar. The yen's strength was a sign that investors were seeking the safety of haven currencies in the face of market volatility. Super Micro Computer Inc. is a leading provider of server and storage solutions, with a market capitalization of $2.5 billion. The company's shares have been under pressure in recent months due to concerns over its revenue growth and profitability. Advanced Micro Devices Inc. is a leading provider of microprocessors, with a market capitalization of $140 billion. The company's shares have been under pressure in recent months due to concerns over its revenue growth and profitability. The sell-off in global stocks is likely to continue in the short term, with investors remaining cautious in the face of market volatility. However, the long-term outlook for the market remains positive, with the S&P 500 expected to reach 4,000 by the end of 2025. The Nasdaq 100 is also expected to reach 14,000 by the end of 2025, driven by the growth of the technology sector. In conclusion, the sell-off in global stocks on November 4, 2025, was driven by concerns over elevated valuations and the decline in tech shares. The losses were reflected in the bond market and the currency market, with investors seeking the safety of haven assets. While the short-term outlook for the market remains cautious, the long-term outlook remains positive, driven by the growth of the technology sector.