AI Anxiety Sends Wall Street into Frenzy

Wall Street indexes slumped as AI concerns battered tech stocks, leading to steep monthly declines. Inflation worries further soured sentiment, with tech giants facing scrutiny over AI investments. Defensive sectors gained, while UBS downgraded U.S. equities, citing high valuations. Corporate moves, like Jack Dorsey's layoffs, impacted stock performance.

Wall Street's indexes experienced a sharp decline on Friday as anxiety over artificial intelligence impacted technology stocks, with the Nasdaq and S&P 500 poised for the deepest monthly losses since March 2025. Investor sentiment was further dampened by higher-than-expected inflation data.

Technology shares suffered substantial losses, with Nvidia falling 2.4% following a previous 5% drop, highlighting persistent concerns over AI spending. Broader indices saw declines in financial and technology sectors, with market players shifting towards more secure investments, including consumer staples and utilities.

Meanwhile, Jack Dorsey's Block soared 13.1% after announcing major workforce cuts aimed at enhancing AI integration. Dell reported optimistic projections for its AI server business. Amid these fluctuations, UBS reduced its U.S. equity recommendation to 'neutral', noting high valuations and uncertain global growth impacts.

(With inputs from agencies.)