Global stock markets mostly fell on Friday, with Wall Street retreating from record levels amid lingering fears over a bubble in the red-hot artificial intelligence sector.
The Dow Jones Industrial Average and S&P 500 had both touched historic highs on Thursday, but could not keep up with a slew of dragging concerns as the week drew to a close.
Technology stocks took a hit, especially after Oracle this week flagged a weak outlook. Chipmaker Broadcom cautioned about margins, sparking a sell-off.
Shares of Oracle and Broadcom fell more than 11 per cent and 4.5 per cent respectively. Nvidia, the darling of the AI boom, was not spared, shedding 3.3 per cent after recently reporting stellar third-quarter results.
However, fears of a bubble might be overstated, because the unprecedented AI spending is "driven by a new economic reality", said Rudy Torrijos, director of industry research at data tracker PitchBook.
"Fears of overinvestment are overblown and hyp
Continue Reading on The National UAE
This preview shows approximately 15% of the article. Read the full story on the publisher's website to support quality journalism.