Tech Stock Tumble: Wave of Caution Amid AI Concerns

Tech-heavy stock markets are reeling from their most significant weekly downturn in seven months, with concerns mounting over the sustainability of artificial intelligence stock rallies. This comes as China revealed weaker-than-expected trade data, exacerbating apprehensions about global economic stability.

The European STOXX benchmark index saw a modest decline in early trading on Friday, shadowing a potential uptick in U.S. markets. Despite a positive shift in S&P 500 and Nasdaq futures, the tech index remains down nearly 2.8% for the week, marking the largest dip since tariffs were introduced in April.

Investors are now turning to bonds and gold as safe havens amidst widespread uncertainty, with bond markets rallying on possible further U.S. rate cuts. Meanwhile, Meta's significant capital expenses and broader market fears of an AI bubble prompt a sense of caution among shareholders and traders alike.