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.
FTSE100
The UK's flagship share index, the FTSE 100, was up 101 points at 9,710 shortly after opening this morning.
Brent crude oil futures were down 0.23% at $64.29 a barrel.
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