Markets jitter as AI stocks tumble
AI-related equities suffered a sharp sell-off this week, Wall Street’s VIX spiked to 27.44 and oil prices rose as the Middle East conflict added a risk premium to markets — a one-two punch of tech uncertainty and energy shock. Bank of America offered a contrarian take that markets may be mispricing AI’s long-term productivity gains, but most investors are demanding clearer paths to profitability before redeploying capital. (indexbox.io) (markets.chroniclejournal.com) (livemint.com) (bloomberg.com)
Nasdaq slid into correction territory this week after a three-day rout left the tech-heavy index more than 10% off its peak, while the Dow and S&P also closed sharply lower on Thursday trading. (wsj.com) Analysts estimate the recent tech slump erased roughly $1.5 trillion in market value over the week and produced the steepest three-day slide for the Nasdaq since April, driven by weak earnings and AI-related re-rating. (indexbox.io) The sell-off extended beyond cloud software to wealth-management and financial-service names; Bloomberg highlighted steep moves in Charles Schwab, Raymond James and LPL Financial after a small startup’s AI tax tool stoked fears of disruption. (bloomberg.com) Oil benchmarks jumped alongside equities’ risk-off move: Brent traded near the low‑$100s and was reported above $107 per barrel while WTI futures opened around $94 on March 27, reflecting a renewed Middle East risk premium. (forbes.com) Bank of America’s strategists have pushed a counterview this month, forecasting continued AI-driven capex and stronger-than-expected 2026 growth while arguing markets may be discounting long‑term productivity gains from AI. (benzinga.com) Market structure shifted into a “avoid‑the-victim” trade as investors dumped any firm seen as exposed to AI disruption, a theme Bloomberg and other outlets say is broadening losses to non‑tech sectors as well. (bloomberg.com)
