Insights

Last week’s sharp market selloff has renewed concerns about how long the AI investment boom can last. Investors appear to be reassessing the sustainability of the AI trade, with crowded positioning and forced selling likely amplifying the recent volatility.

Major U.S. stocks ended the last full week of trading in August modestly higher. Strong AI company earnings boosted tech shares, while the war with Iran, persistent inflation, and a more hawkish Federal Reserve dampened investor enthusiasm for risk.