{"id":550474,"date":"2025-11-05T10:22:14","date_gmt":"2025-11-05T10:22:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/550474\/"},"modified":"2025-11-05T10:22:14","modified_gmt":"2025-11-05T10:22:14","slug":"global-stock-rout-deepens-as-traders-remain-concerned-about-ai-bubble","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/550474\/","title":{"rendered":"Global stock rout deepens as traders remain concerned about AI bubble"},"content":{"rendered":"\n

The FTSE 100 (^FTSE<\/a>) slipped below the flatline and European stocks tumbled on Wednesday as the global sell-off in stocks continued. Analysts believe some investors are taking profits, especially in AI-related stocks, after US stock indices hit record highs last week.<\/p>\n

The bosses of Goldman Sachs (GS<\/a>) and Morgan Stanley have suggested a correction was imminent over the next one or two years. Meanwhile, it emerged that Michael Burry, the investor depicted in The Big Short and who bet against the housing market before the global financial crisis, had taken heavy positions against Palantir (PLTR<\/a>) and Nvidia (NVDA<\/a>).<\/p>\n

Jim Reid, an analyst at Deutsche Bank, said: \u201cWhilst the moves were only one day\u2019s sell-off, the market narrative saw a discernible shift, with a growing chorus discussing whether we might be on the verge of an equity correction.<\/p>\n

\u201cThat speculation has gathered pace over the last month in particular, mainly because the Magnificent 7 has diverged from the rest of the S&P 500, which has revived questions about how concentrated this equity market now is.\u201d<\/p>\n

The so-called Magnificent 7 group of stocks, which includes the likes of Nvidia (NVDA<\/a>), Microsoft (MSFT<\/a>) and Tesla (TSLA<\/a>), has climbed around 45% in the last year alone, thanks to the excitement around AI.<\/p>\n

In contrast, the S&P 500 (^GSPC<\/a>) has risen just 5% over the same period, when stocks on the index are equally weighted.<\/p>\n