theguardian.com 1 months ago URGENCY: 6/10
AI Stock Sell-Off Rocks Global Markets
The recent AI stock sell-off has sent shockwaves through global markets, raising concerns about inflated valuations. Investors are questioning the sustainability of AI spending as losses spread from Wall Street to Asia.
Market Overview
On June 22, 2026, a significant tech sell-off rattled global markets, shifting focus from geopolitical tensions to the future of AI companies. The Nasdaq index opened 2% lower, with the Dow and S&P 500 also experiencing declines. This downturn follows a year of record highs driven by massive investments in AI technology and infrastructure.
Economists are drawing parallels to the dot-com bubble, warning that the heavy reliance on a few tech giants could lead to a market correction. Key indicators include:
- Alphabet's shares plummeted 5% after losing two prominent AI researchers.
- SpaceX's stock dropped 16% as it announced plans for a $20 billion bond sale, raising concerns over its debt-driven spending on AI projects.
- Morgan Stanley predicts AI-related borrowing could exceed $500 billion this year.