US tech stock rout: is the AI bubble bursting?
The Guardian's explainer examines whether the AI bubble is bursting after a rout driven by tech stocks wiped more than $3.2tn from US markets — with the Nasdaq falling 5.5% — following the Democrats' midterm sweep, which investors bet will slow AI and datacentre development. Quilter Cheviot's Ben Barringer says investors must ride out the volatility until the direction of travel becomes clearer, while UBS's Mark Haefele thinks fundamentals do not justify a prolonged downturn, and the explainer warns a sustained sell-off could hit countries banking on the AI revolution.
