""Global stock markets sold off sharply this morning as investors continued to question whether the "Magnificent 7" tech companies have fueled an unsustainable bubble in AI. The selling is brutal. Nasdaq 100 futures were down 0.36% this morning after losing 2.38% yesterday. S&P 500 futures were flat but volatile this morning (the VIX volatility index was up 14% this morning). The S&P 500, which lost 1.56% yesterday, is now down 3% this month, and is down over 5% from its recent high.""
""Weighing on the stock market is widespread uncertainty about the impact of AI infrastructure spending on the earnings of the AI data center corporations. Nvidia's strong report didn't do much to resolve the known unknowns about AI spending," Ed Yardeni of Yardeni Research told clients. "Also unnerving investors are recent reports that Softbank and Thiel Macro sold all their Nvidia shares. Michael Burry (the 'Big Short') continues to raise doubts about the accounting practices of the major AI companies.""
Global stock markets experienced sharp selloffs amid concerns that the largest tech companies may have fueled an unsustainable AI bubble. Major indexes and futures moved lower while volatility spiked, leaving the S&P 500 down about 3% for the month and over 5% from recent highs. Nvidia reported strong earnings but its stock reversed gains, underscoring uncertainty about the timing and magnitude of AI infrastructure spending and data-center earnings. Other tech names suffered heavy losses and investor unease was amplified by reports of large Nvidia share sales and growing worries about AI systems producing false claims.
Read at Fortune
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