US markets are in retreat, with tech stocks leading the slide. Wall Street is facing a serious correction, driven by growing fears of an AI bubble. Big names like Microsoft, Nvidia, and Amazon are seeing sharp losses — despite a major $30 billion deal between Microsoft, Nvidia, and Anthropic. Instead of rallying, markets dropped further. A Bank of America survey reveals 45% of global fund managers now see the AI bubble as the top market risk. Investors are pulling money out of tech and shifting it to safer bets like healthcare and banking. The concern? Companies are overspending on infrastructure without guaranteed returns. Analysts call it the “hyperscaler problem” — too much cash chasing unclear profits. Three key risks could trigger a full-blown crash: weak earnings, a drop in chip demand, or stalled AI innovation. If expectations falter, the trillion-dollar AI hype could begin to unravel.
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