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Global stock markets fall sharply over AI bubble fears

3 months agoby rob74

> The S&P 500 on Tuesday suffered their largest one-day percentage drop in almost a month.

Oh, no! In almost a month? What a newsworthy development!

3 months agoby david-gpu

And they're bouncing back, my watchlist of crypto and indexes is a wall of green rn. Dead cat bounce?

3 months agoby maerF0x0

I am sure I read the very same announcement (from the guardian no less) a few weeks ago.

3 months agoby baal80spam

This is a very dumb take. The US markets are over-leveraged so they are very sensitive to any Fed rates news. Mag7 are still doing very well this month in spite of the madness of issuing 60 billions in bonds to build AI datacenters.

But China just built a massive navy so many are expecting a blockade of Taiwan in the next few years. China also blocked chip exports in the Nexperia spat with the EU, showing their hand. On top of tight rare earths export controls. It's very rational to buy as many chips as possible while they are available. And Wall Street is very happy to finance all this.

The problem is the rest of the economy is out-competed for financing at times of economic distress. And they are over-leveraged, too.

It seems the powers that be decided to sacrifice the wider economy and American workers. Bailouts for me but not for thee.

3 months agoby alecco

To me, Palantir is a very risky investment, I think on the line with junk stock. I do not know if it will continue after the mid-terms, and after 2028, it could be gone.

At least Nvidia makes something real instead of hot wind, so I doubt their stock will fall that much if the AI bubble bursts. Maybe 10/15% at most.

3 months agoby jmclnx