Global Markets Slip as AI Hype Faces Investor Doubts

 

Morning Bid: Tech Angst on AI Doubts

• Market Reaction:

  • Nasdaq dropped 1.5%, S&P 500 slipped 0.6%.

  • Investors are turning cautious after months of heavy AI-driven optimism.

• Main Concerns:

  1. Overvaluation fears – Some AI stocks may be overpriced compared to real earnings.

  2. Limited ROI – Big tech firms are spending billions on AI, but revenue growth is slower than expected.

  3. Job displacement – Worries about automation replacing human workers, fueling political and social pushback.

  4. Nvidia earnings watch – As the world’s top AI chipmaker, its results are seen as a “litmus test” for the sector.

• Global Market Mood:

  • Investors are bracing for the U.S. Federal Reserve’s Jackson Hole meeting, which may give hints on interest rate cuts.

  • European and Asian markets are mixed, showing both resilience and caution.