Global stocks in meltdown as Wall Street bails out of crypto and AI: ‘The bubbly is on ice’

Global stock markets are seeing sharp declines and bitcoin has lost this year’s gains as worries intensify that the AI (artificial intelligence) boom has become a bubble fit to burst.

A small tear has certainly appeared in US tech stocks over the past week, with the tech-heavy Nasdaq closing below a key technical indicator for the first time since late April on Monday.

Sharp stock market falls were seen across large parts of Asia and Europe following the retreat on Wall Street.

Japan’s Nikkei 225 shed more than 3% while the Hang Seng in Hong Kong lost 1.7%.

In Europe, the FTSE 100 was down by just over 1% while Germany’s DAX and the CAC in Paris were 1.2% and 1.3% lower in early afternoon dealing.

Nerves are jangling over tech as the market awaits financial results from Nvidia on Wednesday night.

They are likely to be crucial in determining the path for shares ahead.

The world’s largest company by market value is the beating heart of Wall Street’s artificial intelligence boom and any sign of slowdowns, for both revenues and profits, will be catalysts for further sell-offs.

Stocks linked to AI suffered particularly on Monday, building on declines seen last week, and futures indicated more pain to come when trading begins in the US, though drops were expected to be limited.

Financial analysts said baskets of top AI-linked stocks had now entered so-called correction territory, falling more than 10% in short order this month.

Others pointed to an impact on confidence in the crypto market.

Bitcoin, which hit a $125,000 spot rate level only last month, stood at $91,000 on Tuesday.

It had begun the year around the $94,000 level.

Source: financeyahoo