US and Asian markets fell as concerns over the AI sector continued.

A wave of strong US economic and corporate updates was expected to stabilize markets after weeks of declines, but the optimism failed to take hold.

Robust earnings from AI chip leader Nvidia, solid results from retail giant Walmart, better-than-forecast September hiring, and a rebound in home sales have not eased investor concerns.

After an early rally on Thursday, the three major US stock indexes reversed course and extended their downturn. The S&P 500 closed 1.5% lower, the Dow slipped 0.8%, and the Nasdaq dropped more than 2%.

Asian markets also tumbled on Friday. Nvidia’s shares, which had jumped early Thursday, ended more than 3% lower. In Japan, the Nikkei 225 slid over 2.5% after midday, with tech heavyweight SoftBank plunging more than 10%. South Korea’s Kospi shed around 4%, as SK Hynix fell over 8% and Samsung dropped nearly 6%. Hong Kong’s Hang Seng lost almost 2%.

Bitcoin extended its recent retreat as well, sliding below $90,000 to its weakest level since April, with analysts partly blaming concerns over stretched AI valuations.

Despite Nvidia’s strong results and ongoing demand for its AI chips—which briefly boosted after-hours sentiment on Wednesday—worries about a potential AI bubble continue to weigh on markets. The S&P 500 is down more than 4% so far in November, putting it on track for its worst month since March.

Meanwhile, September’s mixed US jobs data added to uncertainty. Employers hired 119,000 workers—more than twice expectations—but the unemployment rate edged up from 4.3% to 4.4%. Analysts say the conflicting signals deepen the debate over whether the Federal Reserve will begin cutting rates at its December meeting or wait until 2026.