Are AI Fears Triggering a Stock Market Doom Loop?

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Are AI Fears Triggering a Stock Market Doom Loop?

Market turmoil unleashed by advances in AI points up two seemingly contradictory fears about the tech: that it won’t fulfill its very expensive promise and that it will swallow up vulnerable industries.

New artificial intelligence products have recently caused investors to sell the stocks of any company seen as being at risk of displacement, a phenomenon known as the AI “scare trade.” A series of punishing selloffs have hammered dozens of companies across a number of industries, from real estate services and wealth management to insurance brokers and logistics firms.

But there also remains a deep skepticism that the hundreds of billions of dollars tech giants like Amazon and Meta are pouring into AI data centers will deliver big payoffs anytime soon, or more specifically in time to avoid a huge popping sound on Wall Street.

Bloomberg

news agency

Are AI Fears Triggering a Stock Market Doom Loop?

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