Dow Jones Slips Amid AI Bubble Concerns Ahead of Nvidia Earnings
The Dow Jones Industrial Average (DJIA) declined Tuesday as investors grappled with mounting fears of an AI-driven market bubble. Tech stocks led the downturn, with particular focus on Nvidia's impending earnings report—a bellwether for AI sector sentiment.
Bank of America's global fund manager survey reveals 45% of investors now view AI as the top tail risk, while 53% believe AI stocks have already entered bubble territory. "This jump is driven by concerns over the magnitude and financing of the AI capex boom," BofA analysts noted, highlighting that a net 20% of investors see over-investment—the highest level since 2005.
Labor market data shows modest improvement, with ADP reporting private employers cutting 2,500 jobs weekly in late October, down from 11,250 in prior weeks. The BLS is expected to release further employment metrics shortly.
