U.S. stocks fell as the artificial-intelligence selloff began to feed on itself following more disappointing earnings reports from Amazon and Intel, leaving investors to wonder if the tech correction could become a speculative bust. The Nasdaq dropped 2.1%, while the S&P 500 declined 1.4%. Amazon's revenue growth slowed to 11%, missing estimates, and Intel's forecast fell short, signaling weakening demand for chips.
The AI-driven rally that propelled stocks to record highs in 2023 is showing signs of fatigue as valuations outpace earnings. Analysts warn that if Nvidia and other key players report soft guidance, the selloff could intensify. The VIX volatility index jumped to its highest level since March, reflecting growing unease.
Traders are now questioning whether the AI boom is a sustainable trend or a bubble waiting to burst.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing