Concerns over the sky-high stock prices of companies engaged in the artificial intelligence frenzy have intensified over the past week, hitting share, bond, currency and cryptocurrency markets.
The US sharemarket has fallen nearly 2 per cent in a week, bond yields have edged down, the US dollar has reversed its year-long dive and Bitcoin, which was above $US124,000 less than a month ago, briefly dipped below $US100,000 overnight.
Those are all signs of a risk-off environment, with investors moving out of assets perceived to be risky and into the safer harbours of assets such as US Treasuries.
Investors’ abrupt pivot to caution appears to have been triggered by last week’s spate of quarterly results from the mega technology companies.
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