U.S. Stock Markets Face Turbulence Amid Tech Selloff and Economic Uncertainty

U.S. stocks fell Thursday as tech selloffs resumed, driven by fears of economic uncertainty and high valuations. AI-related shares, crucial to prior gains, slumped. Market volatility intensified amid government shutdowns and layoffs. The Federal Reserve's stance on rate cuts remains uncertain as earnings reports reflect diverse outcomes.

U.S. stocks closed lower on Thursday, as the tech selloff from earlier in the week resumed amid rising economic uncertainty and heightened valuations.

Investors are growing wary of inflated stock prices, especially in AI-related sectors, which had previously fueled market gains. This vulnerability has highlighted Wall Street's dependence on tech momentum.

Amid a persistent government shutdown, economic indicators remain limited, prompting alternative private sector insights. Key companies reported a significant increase in layoffs and job losses, hinting at a fast-weakening labor market.

(With inputs from agencies.)