Global stocks slide as AI hype fades

Global stocks are on track for their worst week in seven months as investors pull back from risky assets.

The MSCI All Country World Index has dropped 3.1% this week, pressured by concerns over expensive valuations and doubts about whether heavy spending on artificial intelligence will deliver returns.

Bitcoin also fell below $84,000, extending its decline to more than 30% from a recent record.

European and Asian markets mirrored Wall Street’s sharp slide after the S&P 500 dropped to its weakest level since September.

Tech shares led the downturn, as enthusiasm around AI cooled and Nvidia slipped 3.2%.

Investors are also uneasy about whether the Federal Reserve will cut interest rates next month. Analysts say the pullback looks corrective, not a long-term downturn.