Tech Stocks Tumble as Market Shifts Amid AI Concerns

In a significant turn of events, tech-heavy stock markets are on the verge of their largest weekly declines in seven months. This comes as investors express growing unease over the relentless rally in artificial intelligence stocks, fearing a bubble may be forming.

For the week thus far, the world's largest tech index is down 2.8%, poised for a notable one-week dip not seen since tariffs were announced in April. Among major global indices, chip and cable makers suffer the most, with Softbank Group Corp seeing nearly a 20% drop this week, while Bitcoin reflects a similar sentiment, losing 8% over the week.

As market sentiment shifts, bond markets have gained momentum, driven by investors seeking safer assets. In contrast, the yen and euro showed resilience in the currency market, while sterling slightly faltered upon the Bank of England keeping interest rates steady. Meanwhile, commodities like gold and Brent crude marked significant stable points despite the broader market volatility.