Global Stocks and Gold Shift as AI Fears Shake the Market

Global markets are on edge as investors reassess their bets on AI and tech stocks. A sharp selloff across the U.S., Europe, and Asia has raised questions about stretched valuations and the sustainability of recent rallies. Gold prices rebounded as traders sought safety, while futures showed a cautious tone amid mounting uncertainty.

The U.S. stock market is feeling the pressure after weeks of exuberant tech-driven gains. Futures for the Dow Jones, S&P 500, and Nasdaq were mixed following steep losses. AI-focused firms like AMD and Palantir led the decline, despite stronger-than-expected earnings. Analysts point to rising concerns that an AI bubble could be forming, with famed investor Michael Burry betting against leading chipmakers like Nvidia.

Europe’s stock market caught the chill from AI valuation fears, with major indexes opening lower. Volatility is back in the spotlight, from Novo Nordisk’s earnings dip to Softbank’s massive loss. The Nasdaq’s 2% drop marked one of its worst sessions in recent weeks, highlighting how fragile sentiment has become.