The US stock market is going through a considerable downturn, triggered by a reevaluation of the prospects for artificial intelligence. Since the beginning of November, the S&P500 index has dropped by more than 3%, and the market is overwhelmed by high volatility. President of Goldman Sachs Group John Waldron warns that technical indicators suggest a bearish phase in the American stock market. The primary cause of the crash is a massive sell-off of shares in the world’s largest high-tech companies, which are key drivers of the S&P500's growth.
The wave of selling has reignited discussions about the viability of investments in artificial intelligence. Investors wonder whether AI can generate sufficient revenue and profits to justify the enormous expenses allocated for developing the necessary infrastructure. Companies have invested billions of dollars in computing power and data centers, but the results have yet to meet the initial market expectations. This imbalance between investment and results has created pressure on the technology sector.
John Waldron confirms that the market is currently keeping its finger on the pulse of AI development and its commercial applicability. However, he views the ongoing pullback as a healthy phenomenon necessary for stock valuation reassessment. Such corrections are common in rapidly growing sectors where initial expectations are not fully met. The market must find a new equilibrium between the enthusiasm about AI potential and the actual ability of companies to monetize this technology.
