Stock Market Reels From "Sell First, Ask AI Questions Later" Tech Slump
U.S. stocks have given up all of their gains for the year, a key index of the so-called Magnificent Seven tech giants has slid into correction territory, and volatility gauges have spiked amid a rotation trade tied to artificial-intelligence disruption that likely will weigh on markets for the coming weeks.The selloff, which began as concern that the biggest players in the AI investment boom had committed too much capital and were seeing too little return, has spread to a deeper worry that the new technology will trigger massive changes to the way companies do business in all sectors of the economy.That's forced a repricing of everything from risk appetite to cash flow and ultimately corporate profit forecasts from all corners of the market, with those at the coalface of AI disruption, like software and financial services, getting hurt the most. Non-tech stocks have reaped the benefits."Many of the trade's stock market casualties will survive and boost their productivity and profits us