"Global financial markets are currently experiencing an unprecedented phase of sharp volatility, driven by a complex mix of economic and political factors - most notably the ongoing U.S. government shutdown and a decline in confidence over the sustainability of major tech companies' profits. While gold has surpassed the $4,000 per ounce mark for the first time and some stocks have risen on the back of artificial intelligence deals, the main stock indices have declined, reflecting the prevailing anxiety among investors."
"It can be said that the current phase represents a "psychological correction" rather than merely a price correction, as investors are starting to realise that the promised profits from advanced technologies will not materialize as quickly as corporations promote. From my perspective, this shift in investor sentiment is both healthy and necessary, as it restores balance to an overly enthusiastic market and prevents the formation of a financial bubble whose consequences could be severe for the global economy."
Global financial markets show sharp volatility driven by economic and political factors, particularly a U.S. government shutdown and waning confidence in tech profit sustainability. Gold exceeded $4,000 per ounce, while some stocks rose on artificial intelligence deals but major indices declined, signaling investor anxiety. Nasdaq and S&P 500 fell after earlier record highs, revealing fragile bullish momentum. Investors are questioning massive AI spending and realistic returns. The phase functions as a psychological correction as expectations adjust and promised fast profits from advanced technologies appear unlikely. The U.S. shutdown adds uncertainty, costing billions and delaying key economic data releases.
Read at London Business News | Londonlovesbusiness.com
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