Advanced Micro Devices (AMD) plunged by 7.3 percent after a strong move to the upside over the course of the previous session. Major AI players Palantir Technologies (PLTR), Oracle (ORCL) and Nvidia (NVDA) also showed significant moves to the downside. Chipmaker Qualcomm (QCOM) also tumbled by 3.6 percent despite reporting better than expected fiscal fourth quarter results and providing upbeat guidance for the current quarter. Concerns about an AI bubble and the possibility of a near-term correction have recently weighed on investors' minds.

Negative sentiment grew after a report from Challenger, Gray & Christmas revealed a surge in U.S. layoffs, with 153,074 job cuts announced in October—a staggering 183% jump from September. The firm noted that post-pandemic corrections, AI adoption, and rising costs are fueling the cuts, while those laid off are struggling to find new roles, signaling a softening labor market.

Semiconductor stocks substantial moved back downwards following yesterday's rebound, with the Philadelphia Semiconductor Index tumbling by 2.4 percent. Software stocks were significantly weak, as reflected by the 2.2 percent slump by the Dow Jones U.S. Software Index. Retail, airline and computer hardware stocks also saw considerable weakness, while energy stocks bucked the downtrend despite a modest decrease by the price of crude oil.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index jumped by 1.3 percent while Hong Kong's Hang Seng Index surged by 2.1 percent. Meanwhile, the major European markets moved downwards while the U.K.'s FTSE 100 Index fell by 0.4 percent, the German DAX Index and the French CAC 40 Index tumbled by 1.3 percent and 1.4 percent.

In the bond market, treasuries showed a notable rebound following the weakness seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 6.4 bps to 4.09 percent.