Global stock markets fall sharply over AI bubble fears
17 days ago
- #AI
- #Stock Market
- #Investments
- Global stock markets fell sharply due to concerns over cooling AI company valuations.
- US, Asian, and European markets dropped after bank warnings of a potential stock market correction.
- Tech stocks, including the 'magnificent seven' AI-related companies, led the Nasdaq to a 2% decline.
- S&P 500 also fell over 1%, with Palantir dropping nearly 8% despite raising its revenue outlook.
- Short-seller Michael Burry bet against AI giants Palantir and Nvidia, sparking criticism and sell-offs.
- Asian markets saw their sharpest slide in seven months, with Japan and South Korea dropping over 5%.
- Morgan Stanley and Goldman Sachs CEOs warned of a possible market correction, echoing JP Morgan's Jamie Dimon.
- Analysts question AI investments, noting concentration in a few companies like OpenAI and Nvidia with little ROI.
- Bitcoin briefly fell below $100,000, marking its worst monthly performance in a decade amid economic fears.