Wall Street Hit by Tech Rout as AI Winners Tumble

Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.Volatility lashed Wall Street, pushing high-valuation technology shares and crypto lower while bonds pared losses after a senior Federal Reserve official signaled room for rate cuts.A tech rout hit stocks amid growing skepticism about the artificial-intelligence trade. Nvidia Corp. sank 3.8%. Losses accelerated as the S&P 500 breached a key technical level, with the index down 1.2%. The Nasdaq 100 slid 1.9%. In late hours, Micron Technology Inc. gave an upbeat forecast.Even the slightest hint of trouble around data centers is enough to spook investors banking on the AI boom. The latest hiccup revolved around Oracle Corp.’s financing for a data center in Michigan. While it’s largely moving along, Blue Owl Capital, a longtime partner in its AI infrastructure build-out, is not contributing equity. The shares sank.For years, investing in big techs has been a no brainer, given their stalwart balance sheets. Now, there’s concern over whether the sector — which has soared during the bull market — can keep justifying its lofty valuations and ambitious AI spending.Today's show features: Matthew Luzzetti, Chief US Economist for Deutsche Bank, on the labor market, inflation and the economic outlook Alli McCartney, Managing Director of Wealth Management with Alignment Partners at UBS, on key market indicators as the new year approaches Mike Bellin, US IPO Leader at PwC, on the IPO market outlook for 2026 and Bloomberg News Equities Reporter Natalia Kniazhevich on Medline’s first day of trading Katie Hubbard, President of US Capital Markets at Walton Global on earnings from Lennar and the US real estate landscape See omnystudio.com/listener for privacy information.

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