Global markets fell sharply on Tuesday as fears grew that the artificial intelligence boom could be nearing its end.
Bitcoin plunged 6.7% to briefly trade below $100,000 for the first time since June, marking its entry into a bear market.
The sell-off rippled across global equities, with the S&P 500 down 1.18% and the Nasdaq falling 1.84%.
Indexes in France, Germany and Japan also dropped by more than 1% amid concerns the AI-led rally is running out of steam.
Goldman Sachs boss David Solomon warned of a potential 10–20% correction within two years, while Morgan Stanley’s Ted Pick said investors should “welcome” a market drop.
Investor Michael Burry, famed for predicting the 2008 crash, has reportedly placed a $1.1bn bet against AI giants Nvidia and Palantir.
Both companies saw share prices tumble, with Palantir down over 8% and Nvidia losing 3.4%.
Analysts say the pullback reflects growing fears that AI valuations are overstretched and that high interest rates will keep pressuring tech stocks.
Companies reporting today
- Barratt Redrow - Trading Statement
- Cameco - Q3 Results
- Coca-Cola Europacific Partners - Q3 Trading Statement
- J D Wetherspoon - Q1 Trading statement
- Lancashire Holdings - Q3 Trading Statement
- Marks and Spencer - Half Year Results
- Novo Nordisk - Q3 Results
- TP ICAP - Q3 Trading Statement
- Trainline - Half Year Results