CRACKS ARE BEGINNING TO SHOW IN THE STOCK MARKET , AS DOUBTS GROW ABOUT AI INVESTMENTS

What happened: U.S. stocks are showing strain a week after record highs as investors question returns on trillions of dollars invested in AI. The S&P 500 and Nasdaq have fallen from their peaks. Key numbers: S&P 500 off more than 1% from its week-ago record and sits near 7,600. Nasdaq down about 4% from last week's peak. Why it matters: Yardeni cited rising investor caution about the AI trade, and Citi flagged the equity sell-off as a downside risk to consumer spending. Sustained declines in tech spending or stocks would likely put broader U.S. economic growth at risk.

U.S. stocks are showing strain a week after record highs as investors question returns on trillions of dollars invested in AI. The S&P 500 and Nasdaq have fallen from their peaks.

Yardeni cited rising investor caution about the AI trade, and Citi flagged the equity sell-off as a downside risk to consumer spending. Sustained declines in tech spending or stocks would likely put broader U.S. economic growth at risk.