Market Jitters: AI Stock Surge Halts Amid Investor Caution

Tech-heavy stock markets are seeing their most significant declines in seven months, as investor concerns grow over the sustained rally in artificial intelligence stocks. The shift in sentiment has led to increased investment in safer assets like bonds and the yen.

S&P 500 futures and Nasdaq 100 futures appeared marginally stronger in early Asian trading. However, the Nasdaq fell 1.9% overnight, marking a 2.8% weekly decline, the steepest since March. This represents a concerning drop for the tech sector, which had previously seen a strong recovery.

The downward trend is not limited to the U.S., with Japan's Nikkei and Seoul's Kospi experiencing significant losses. Major tech investors like Softbank and emerging indicators like Bitcoin reflect a broader mood shift, driven by fears of a market bubble in AI stocks.