AI Triggers Stock Market Doom Loop: $1.5 Trillion Wiped from Tech Giants

• The stock market is experiencing turmoil due to conflicting fears about AI's impact: disruption of industries versus skepticism about immediate payoffs from massive AI investments.
• Over $1.5 trillion in market value has been wiped from major tech companies like Microsoft, Amazon, Meta, and Alphabet, pushing the Nasdaq 100 into negative territory.
• Investors are growing impatient with the lack of immediate revenue windfalls despite hundreds of billions poured into AI, leading to punishing selloffs.
• Fears of AI displacing existing businesses are causing selloffs in various sectors, including real estate services, wealth management, and logistics firms.
• Despite some viewing the selloff as an overreaction, underlying concerns about AI-first companies' near-term profitability and the sustainability of hyperscaler spending remain.