Market News
Wall Street slumps on AI bubble fears - THE TELEGRAPH
Wall Street stocks slumped on Tuesday amid continued concerns about a possible AI bubble.
All of the so-called “Magnificent Seven” tech giants – Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla – saw their stock prices fall, following heavy losses in Asia overnight.
The tech-heavy Nasdaq index was down 1.5pc in mid-morning trading in New York, while the S&P 500 and Dow Jones were both more than 1pc lower.
It marks the second day of heavy selling of technology stocks in the US and extends a fall over the past month, as investors fret about a possible AI bubble bursting.
Sundar Pichai, chief executive of Google, told the BBC there was some “irrationality” in the AI boom and said “no company is going to be immune, including us” if a bubble bursts.
A Bank of America survey also found a record number of fund managers believe tech companies are “overinvesting” in AI.
