{"id":36734,"date":"2025-11-05T18:00:00","date_gmt":"2025-11-05T17:00:00","guid":{"rendered":"https:\/\/www.gnews.cz\/?p=36734"},"modified":"2025-11-05T17:03:36","modified_gmt":"2025-11-05T16:03:36","slug":"ai-bubble-bursts-global-markets-plunge-bankers-warn-of-correction","status":"publish","type":"post","link":"https:\/\/gnews.cz\/en\/neprehlednete\/ai-bublina-praska-globalni-trhy-se-propadaji-bankeri-varuji-pred-korekci\/","title":{"rendered":"AI bubble bursting? Global markets plunge, bankers warn of correction"},"content":{"rendered":"

Global stock markets saw a sharp decline in early November as fears grew among investors that the artificial intelligence (AI) boom had turned into a speculative bubble. As The Guardian reported, indexes in the US, Asia and Europe plunged after the heads of the world's biggest banks warned of an imminent market correction.<\/strong><\/p>\n\n\n\n

In the US, according to Bloomberg<\/strong> technology-oriented Nasdaq Composite<\/strong> fell two percent on Tuesday - the biggest one-day drop in almost a month. Index S&P 500<\/strong> lost more than one percent, mainly due to the weakening of technology companies. The company's shares fell significantly Palantir Technologies<\/strong>, which, paradoxically, fell by almost eight percent after the previous increase in the sales outlook. As stated by The Guardian<\/strong>, all titles from the so-called \u201eBig Seven AI<\/strong>\u201c - thus Nvidia<\/strong>, Amazon<\/strong>, Apple<\/strong>, Microsoft<\/strong>, Tesla<\/strong>, Alphabet<\/strong> (Google) and Meta Platforms<\/strong> (Facebook, Instagram, WhatsApp) - saw a noticeable drop in one day.<\/p>\n\n\n\n

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Tensions in the markets were boosted by a well-known investor Michael Burry<\/strong>, who became famous for predicting the financial crisis in the year two thousand and eight. As he recalled. Reuters<\/strong>, Burry bet against the stock Nvidia<\/strong> a Palantiru<\/strong>, triggering another wave of sell-offs. CEO Palantiru Alex Karp<\/strong> responded to his move with harsh criticism, saying that short-sellers were trying to \u201eto question the AI revolution itself\u201c<\/em>.<\/p>\n<\/blockquote>\n\n\n\n

From Wall Street to Tokyo<\/strong><\/h3>\n\n\n\n

According to the Asian markets Reuters<\/strong> on Wednesday, headed in the same direction as the US. Equity indices in Japan<\/strong> a South Korea<\/strong> recorded their biggest declines in seven months, losing over five percent from the previous day's record. Also in Europe<\/strong>, as he stated Financial Times<\/strong>, the mood worsened: the London FTSE 100<\/strong>, Parisian CAC 40<\/strong> and German DAX<\/strong> weakened slightly in morning trading.<\/p>\n\n\n\n

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The chiefs also joined the voices of warning Morgan Stanley<\/strong> a Goldman Sachs<\/strong>, who pointed out that the current valuation of stocks - especially technology stocks - is not sustainable in the long term. As he wrote New York Post<\/strong>, their concerns follow on from the October warning Jamie Dimon<\/strong> z JPMorgan Chase<\/strong>, who warned that a significant drop could come in the next six months to two years.<\/p>\n<\/blockquote>\n\n\n\n

\u201eWe see a clear retreat from risky assets in the last twenty-four hours. Fears of overheated valuations of technology companies are worsening investor sentiment,\u201c said analyst Jim Reid<\/strong> z Deutsche Bank<\/strong>, whom he quoted The Guardian<\/strong>.<\/p>\n\n\n\n

The fragile foundations of the AI boom<\/strong><\/h3>\n\n\n\n

The growth of AI-related stocks has been staggering over the past two years. But according to Reuters<\/strong> most of the investment is concentrated in a handful of giants, especially Nvidia<\/strong> a OpenAI<\/strong>. Although these companies have become a symbol of technological progress, the return on investment has so far fallen far short of expectations.<\/p>\n\n\n\n

Some economists compare the current situation to the dot-com bubble at the turn of the millennium - when the rapid rise of technology stocks ended in a sudden crash. As pointed out by World Economic Forum<\/strong> and quotes Reuters<\/strong>, the global economy is threatened by three \u201ebubbles\u201c: in artificial intelligence, cryptocurrencies and sovereign debt.<\/p>\n\n\n\n

Bitcoin under pressure<\/strong><\/h3>\n\n\n\n
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Cryptocurrencies have also lost money. Bitcoin<\/strong> briefly fell below the threshold for the first time since June a hundred thousand dollars<\/strong> (about two and a half million crowns). In October, it reached an all-time high of over one hundred and twenty-six thousand dollars<\/strong>. As he states CoinMarketCap<\/strong>, 's monthly decline of three full seven-tenths of a percent represented the cryptocurrency's worst performance in a decade.<\/p>\n<\/blockquote>\n\n\n\n

According to Bloomberg<\/strong> this development suggests that investors are starting to pull out of riskier assets - not just technology stocks, but also cryptocurrencies. Many prefer cash or government bonds, which offer more stable returns at higher interest rates.<\/p>\n\n\n\n

Cautious optimism or the beginning of the fall?<\/strong><\/h3>\n\n\n\n

Some analysts believe that the current decline is a natural correction after months of rapid growth. Others, however, believe Financial Times<\/strong> warn that this is a signal of a deeper problem: exaggerated expectations about AI may not be sustainable in the long term, and if companies fail to meet optimistic forecasts, the slump could deepen.<\/p>\n\n\n\n

The lesson for European and Czech investors is clear - diversify, consider risk and do not panic. Although artificial intelligence remains the key trend of the decade, recent developments are a reminder that even the biggest technological revolution can lose its breath if it is overtaken by speculation.<\/p>\n\n\n\n

gnews.cz - GH<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

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