AI Bubble Weighs on S&P 500 and Nasdaq Despite Dow Jones Gains

Wall Street opened Friday’s session with mixed performance as growing concerns over an AI bubble pushed the S&P 500 and Nasdaq lower, overshadowing earlier optimism driven by expectations of looser US monetary policy.

Recent earnings from Broadcom reignited fears that valuations across the technology sector may be overstretched, with analysts warning that the AI bubble is beginning to weigh on investor sentiment despite supportive signals from the Federal Reserve.

During the session, the S&P 500 edged lower while the Nasdaq Composite extended its decline under pressure from technology stocks linked to artificial intelligence.

Meanwhile, the Dow Jones Industrial Average posted modest gains, supported by more traditional stocks that remain less exposed to the AI bubble.

Market observers suggest that US equities are entering a reassessment phase, as investors balance enthusiasm for artificial intelligence against concerns of overvaluation and upcoming interest rate decisions.