AI 'Doom Loop' Hits Tech Stocks as Alphabet Slumps 11% from Peak

The artificial intelligence sector is facing a significant correction as reports emerge of a 'doom loop' impacting AI-related equities. Alphabet shares have notably dropped 11% from their recent highs, despite the company's established leadership in the AI space. Market analysts suggest that investor sentiment is shifting due to growing concerns over high valuations and a potential rotation out of growth-oriented tech stocks. This downturn poses a risk to broader market indices, including the S&P 500 and Nasdaq, which have relied heavily on AI as a growth engine. Institutional investors are closely monitoring the situation as the correction spreads to other major players like NVDA and MSFT. If the downward trend persists, it could trigger heightened volatility across global financial markets in the coming weeks.