AI bubble fears return as Wall Street falls back from short-lived rally

Oil prices declined following Ukrainian President Volodymyr Zelenskiy's agreement to pursue a peace plan, coinciding with the impending implementation of U.S. sanctions on two major Russian oil companies. This development reflects ongoing geopolitical tensions and market reactions to potential shifts in supply dynamics.

US stocks have declined as concerns about artificial intelligence (AI) persist, despite strong sales reported by Nvidia. Investors remain jittery about the potential for an AI bubble, which has overshadowed Nvidia's positive earnings performance.

Intrinsic, a subsidiary of Alphabet, has partnered with Foxconn, a supplier for Nvidia, to implement AI robots in Foxconn's factories in the U.S. This collaboration highlights the growing focus on 'physical AI', which refers to artificial intelligence that operates in real-world environments.

Asian stocks fell sharply following losses on Wall Street, where a brief rally led by Nvidia Corp. quickly dissipated. Investors are retreating from riskier assets, including cryptocurrencies, amid growing concerns about market volatility.

After a week of market uneasiness, Nvidia's profit surge and Walmart's earnings initially provided relief to investors. However, by Thursday afternoon, this bullish sentiment faded as concerns about a potential AI bubble resurfaced. Jensen Huang, Nvidia's CEO, had previously eased worries about overinvestment in AI following the company's earnings report.

Ross Stores has raised its full-year guidance following a 7% increase in same-store sales, surpassing Wall Street's expectations of 3.9% growth. This positive trend reflects the retailer's strong market performance and consumer demand for discount goods.

The Congressional Budget Office (CBO) has revised its estimate, stating that tariffs imposed by former President Trump will reduce U.S. deficits by $1 trillion less than previously projected. This adjustment reflects the ongoing impact of trade policies on the national economy.

US tech stocks, particularly the Nasdaq, experienced significant volatility, surrendering gains of over 2% in the most turbulent session since April. This downturn reflects ongoing concerns in the market, particularly in the technology sector, as traders grapple with uncertainty.