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AI Bubble Fears Rock Global Markets

Updated 16 days ago

Global stock markets experienced a sharp decline on November 5, 2025, driven by escalating fears of an artificial intelligence (AI) bubble cooling, following a period of unprecedented highs. This widespread downturn saw the tech-heavy Nasdaq fall 2% and the S&P 500 decline over 1% on November 4, with leading AI-related companies and other "Magnificent Seven" firms suffering significant losses.

AI Bubble Fears Rock Global Markets

Global stock markets across the US, Asia, and Europe experienced a sharp decline on November 5, 2025, driven by escalating fears of an artificial intelligence (AI) bubble cooling, The Guardian reported. This widespread downturn followed a period of unprecedented highs, prompting warnings from financial leaders about a potential serious market correction.

theguardian.com reported, In the United States, the tech-heavy Nasdaq and S&P 500 recorded their largest one-day percentage drops in nearly a month on Tuesday, November 4, according to The Guardian. The Nasdaq fell 2%, while the S&P 500 declined over 1%, primarily due to a broad sell-off in technology stocks.

Leading AI-related companies, including chipmaker Nvidia and e-commerce giant Amazon, saw their stock values fall significantly, The Guardian confirmed. Other "Magnificent Seven" firms like Apple, Microsoft, Tesla, Alphabet, and Meta also experienced notable one-day losses. Data analytics company Palantir slumped almost 8%.

theguardian.com noted, Bank executives have issued stark warnings regarding a looming stock market correction, The Guardian reported. Reuters stated on November 4, 2025, that CEOs from Morgan Stanley and Goldman Sachs voiced concerns about

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