Wall Street Slides as Artificial Intelligence Bubble Fears Grow

Wall Street ended Friday’s session lower as investors rotated away from technology stocks toward other sectors, amid rising concerns about a potential artificial intelligence bubble.

The move reflected growing caution across U.S.

financial markets.

Selling pressure on Wall Street intensified following warnings from major technology companies, which raised doubts about the sustainability of profits tied to artificial intelligence investments.

Expectations of lower future profit margins added to investor anxiety.

At the same time, U.S.

Treasury yields climbed after several Federal Reserve officials voiced concerns that inflation remains too high to justify interest rate cuts in the near term.

This outlook placed additional pressure on Wall Street, particularly on growth-oriented stocks.

European markets were also impacted, surrendering early-week gains to close lower in response to the decline in Wall Street.

Risk-off sentiment dominated trading, fueled by renewed fears over AI-driven rallies and ambitious spending across the sector.