Tech Slides on AI Concern
Tech sold off in a volatile week as AI disruption concerns resurfaced. Pressure intensified after an AI company launched an enterprise‑focused AI model capable of replacing core workflow functions, including legal and sales operations, reviving fears that AI could undermine traditional business software providers. Sentiment weakened further following negative earnings reactions from Alphabet and Amazon. The sell‑off reinforced a rotation away from growth, as value stocks outperformed, lifting the Russell 1000 Value Index up 2.2%.
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