Tech Rally Fades as Stock Markets Hit Turbulence
European stock markets experienced a decline, with the tech rally losing momentum and Wall Street banks issuing selloff warnings. The U.S. dollar climbed, while the AI market faced skepticism. Investors weighed the U.K.'s economic stance, with significant uncertainties in the U.S. market despite a rate cut by the Fed.
European stock markets dipped on Tuesday, reversing gains from recent tech-driven rallies. This comes as top Wall Street banks cautioned about a potential stock market selloff, and the dollar surged to a three-month peak.
U.S. futures indicated a sharp downturn, with notable decreases in S&P and Nasdaq futures. At a Hong Kong investment summit, Goldman Sachs and Morgan Stanley executives warned of a potential market correction exceeding 10% within two years.
Meanwhile, skepticism grew around AI investments, with notable Palantir share declines and criticisms of overhyping recent tech deals. In the U.S., varied Federal Reserve opinions clouded the economic outlook, impacting global markets and dulling sentiment following weak economic data.
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