AI bubble fears trigger Wall Street forecast reversal and global stock sell‑off ahead of SpaceX IPO

AI bubble concerns drive unprecedented market correction

On Thursday, equity indices across North America, Europe and Asia fell between ↓ 1.2% and ↓ 2.5% as investors reassessed earnings outlooks in light of mounting speculation that artificial‑intelligence valuations are unsustainable.

Economists from major banks admitted their 2024 growth forecasts were overly optimistic, revising GDP projections downward by as much as 0.5 percentage points in the United States.

“We didn’t see this coming,” said a senior analyst at Reuters, describing the speed of the pull‑back.

Data cited by Bloomberg shows the Nasdaq Composite fell sharply, reinforcing the risk‑off mood.

Compounding the anxiety, SpaceX’s planned initial public offering this Friday is being viewed as a litmus test for capital appetite toward high‑growth, AI‑linked ventures. Should the float falter, it could validate the AI bubble narrative and accelerate risk‑off flows.

Bank of America warned that inflationary pressure may outpace job growth, a scenario that could further erode confidence in speculative sectors.

Meanwhile, a former Goldman Sachs executive, dismissed after a high‑profile baking controversy, has become a cautionary tale of corporate culture clashes.