AI Selloff, Oil & Treasury Yields Pressure Markets
Tech stocks slid Friday as a chipmaker rout hit an eighth day, with oil and Treasury yields adding pressure.
The decline reflected investor doubts about the outlook for the artificial-intelligence trade, according to Bloomberg. Worries have focused on whether the buildout of AI infrastructure has outrun the ability of firms to earn a return on their investments.
Chipmakers led the pressure, with the sector selloff continuing for an eighth consecutive day. The broader technology retreat pulled stocks lower as the AI trade came under fresh scrutiny.
Fed Chairman Kevin Warsh described AI as potentially the most consequential change to the US and global economy in his lifetime, Bloomberg reported. His comment came as markets weighed the scale of AI investment against the returns it may generate.
The market pressure also included oil and Treasury yields, according to Bloomberg. The combination weighed on equities as Wall Street moved toward the closing bell.
Bloomberg's The Close, a markets program, featured guests including Morgan Stanley Investment Management Senior Portfolio Manager Andrew Slimmon, former Kansas City Fed President and CEO Thomas Hoenig, Maxim Group Senior Consumer Internet Analyst Tom Forte, Arizona Land Consulting Founder and CEO Anita Verma-Lallian, JPMorgan Asset Management Global Market Strategist Jordan Jackson, TGI Fridays CEO Ray Blanchette, Graza CEO Andrew Benin, Sensor Tower VP of Insights Seema Shah, and Carlyle Group Co-Founder and Co-Chairman David Rubenstein. The program covers news and analysis before and after the closing bell on Wall Street.
Bloomberg's Businessweek Daily Podcast examined the persistent AI jitters. The episode focused on the people, companies and trends shaping the global economy.