AI Repricing Wipes Out $1 Trillion in Global Equities as Volatility Spreads

Deutsche Bank reports a significant market correction as investor sentiment shifts regarding AI valuations. This sharp repricing has resulted in the erasure of over $1 trillion in global equity value. While initially concentrated in the technology sector, the volatility has now broadened to include wealth management, real estate, and financial sectors. Analysts note that the S&P 500 is facing increased pressure as risk assets are reassessed across the board. The scale of this value destruction highlights a growing skepticism toward the immediate returns on AI investments. Consequently, major ETFs such as SPY and QQQ are experiencing heightened fluctuations and downward pressure.