Tech Stocks Tumble Amid AI Bubble Concerns

Tech stocks are experiencing a notable downturn, with concerns arising over a potential AI equity bubble. This week, investment heavyweights such as Softbank Group have faced substantial declines, marking the steepest drop since pandemic times.

The Nasdaq Composite has fallen over 2% amidst Asia’s session pressure, while Japan and South Korea's tech-heavy markets have also been negatively impacted. Despite these modest drops following significant market rallies, the lack of a clear catalyst for the decline is causing investor unease.

More than 50% of fund managers surveyed by BofA in October believe we are currently in an AI equity bubble. As uncertainties loom, bond markets respond to rising U.S. layoffs with potential interest rate reductions, and safe assets gain favor. Key market activities to monitor include German trade figures and Canadian jobs data.