The post Here’s Why AI Bubble Fears Are Causing A Market Sell-Off appeared on BitcoinEthereumNews.com. Topline Each of the three major stock indexes declined again on Tuesday—with losses led by Amazon, Microsoft and Nvidia—as fears of an AI bubble appeared to have worsened among economists, while hopes of another interest rate cut have diminished. Several AI-linked stocks gave up more ground as major indexes dropped in a fourth-straight trading session. AFP /AFP via Getty Images Key Facts The Dow Jones Industrial Average dropped about 450 points (0.9%), the S&P 500 declined 0.5% and the tech-heavy Nasdaq fell 0.8% as of around noon EDT on Tuesday. Megacap stocks Amazon and Microsoft each earlier fell 3.5%, adding to declines for Nvidia (2.8%), Meta (2.5%), Palantir (2.5%), Tesla (2.4%), Alphabet (1.8%), Broadcom (1%) and AMD (5.5%), lowering the Nasdaq. Home Depot led broader losses across the Dow with its shares trading down 4.3% after reporting an earnings miss, as several bank stocks fell in value, including Visa (1.8%), American Express (1.6%), JPMorgan Chase (0.7%) and Goldman Sachs (0.3%). Why Are Tech Stocks Declining? Bank of America, in a survey of global fund managers released Tuesday, found the largest perceived risk for markets is that AI stocks are in a bubble, with concerns some companies are over-hyped and disconnected from their real value. An AI bubble was viewed as the top risk by 45% of investors surveyed by Bank of America, and a majority of respondents expressed concerns that companies were overinvesting for the first time since 2005. This was largely driven by “concerns over the magnitude [and] financing” of the AI boom, the bank said. About 53% of investors believe AI stocks are already in a bubble, down from a record 54% in October. Last week, stocks appeared to be reacting to the White House’s announcement that employment and inflation data for October and September would be released,… The post Here’s Why AI Bubble Fears Are Causing A Market Sell-Off appeared on BitcoinEthereumNews.com. Topline Each of the three major stock indexes declined again on Tuesday—with losses led by Amazon, Microsoft and Nvidia—as fears of an AI bubble appeared to have worsened among economists, while hopes of another interest rate cut have diminished. Several AI-linked stocks gave up more ground as major indexes dropped in a fourth-straight trading session. AFP /AFP via Getty Images Key Facts The Dow Jones Industrial Average dropped about 450 points (0.9%), the S&P 500 declined 0.5% and the tech-heavy Nasdaq fell 0.8% as of around noon EDT on Tuesday. Megacap stocks Amazon and Microsoft each earlier fell 3.5%, adding to declines for Nvidia (2.8%), Meta (2.5%), Palantir (2.5%), Tesla (2.4%), Alphabet (1.8%), Broadcom (1%) and AMD (5.5%), lowering the Nasdaq. Home Depot led broader losses across the Dow with its shares trading down 4.3% after reporting an earnings miss, as several bank stocks fell in value, including Visa (1.8%), American Express (1.6%), JPMorgan Chase (0.7%) and Goldman Sachs (0.3%). Why Are Tech Stocks Declining? Bank of America, in a survey of global fund managers released Tuesday, found the largest perceived risk for markets is that AI stocks are in a bubble, with concerns some companies are over-hyped and disconnected from their real value. An AI bubble was viewed as the top risk by 45% of investors surveyed by Bank of America, and a majority of respondents expressed concerns that companies were overinvesting for the first time since 2005. This was largely driven by “concerns over the magnitude [and] financing” of the AI boom, the bank said. About 53% of investors believe AI stocks are already in a bubble, down from a record 54% in October. Last week, stocks appeared to be reacting to the White House’s announcement that employment and inflation data for October and September would be released,…