AI Bubble Concerns Weigh on Tech ETFs as Google CEO Warns of Market Irrationality
The S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) extended losses for a second straight session as fears of an AI valuation bubble intensified. Bank of America's latest fund manager survey reveals nearly half of investors view AI as the market's greatest tail risk, with 53% believing the sector is already in bubble territory. The survey's cash allocation indicator flashed a sell signal—a historically bearish omen for equities.
Alphabet CEO Sundar Pichai compounded concerns during a BBC interview, acknowledging no company—including Google—would be immune from an AI downturn. His characterization of the boom containing both rational and irrational elements drew parallels to the dot-com era's excesses.