Chip Sector Selloff and AI Valuation Bubble Fears Drag US Stocks Lower; Bitcoin and Mag7 Called Topping 9 Months Ago
US stocks closed lower this week, pressured by persistent weakness in chip stocks and AI valuation concerns spreading from Asia to the US market. The University of Michigan's long-term inflation expectations came in below forecasts, easing some rate hike worries, but failed to offset the selloff. Bank of America data showed investors pulled $8.5 billion from US equities for the first time in three months. Notable hedge funds and analysts warned AI stocks are in a bubble that may burst, while Questar Capital Partners stated that Mag7 and Bitcoin peaked nine months ago and have not yet recovered. Crude oil prices continued to decline as tanker traffic through the Strait of Hormuz remained steady.


