Global Markets Retreat on AI Spending Fears

Global markets experienced a significant downturn, with a stock rout on Wall Street spreading globally. This was primarily driven by fears surrounding the projected $600-billion AI spending spree by major tech companies like Amazon, Microsoft, Alphabet, and Meta Platforms, raising concerns about the cost of the AI boom and potential disruption in the software and data services sectors. The S&P 500 fell into negative territory for the year, and its software and services index dropped sharply, leading to what traders called 'software-mageddon'. Cryptocurrencies and precious metals also saw high volatility and selloffs, indicating a broad 'risk off' sentiment. Amidst these concerns, there's an increased likelihood of a rate cut by the United States===Federal Reserve.