Global stock markets sold off sharply this morning as investors continued to question whether the “Magnificent Seven” tech companies have fueled an unsustainable bubble in AI. The selling is brutal. Nasdaq 100 futures were down 0.36% this morning after losing 2.38% yesterday. S&P 500 futures were flat but volatile this morning, and the VIX volatility index was up 14% this morning. The S&P 500, which lost 1.56% yesterday, is now down 3% this month and is down over 5% from its recent high.
Bank of America said it all in a headline on a note this morning: “The bubbly is on ice.”
