Woofun AI reports that US equities declined this week, driven by persistent selling pressure in the semiconductor sector. Although lower-than-expected long-term inflation expectations from the University of Michigan survey alleviated some interest rate hike concerns, these factors failed to counteract the downturn in chip stocks. The S&P 500 index briefly turned positive during trading sessions, but gains quickly evaporated, mirroring multiple failed rebound attempts observed throughout the week.

Concerns regarding AI valuations spread from Asian markets to US trading. Two prominent Chinese hedge funds warned of a potential bubble in AI stocks. SoftBank Group shares fell following reports that OpenAI might delay its IPO until 2027. The South Korean Kospi index triggered a trading halt for the second time this week due to sharp declines in chip stocks, followed by a partial recovery. In the US, investors withdrew $8.5 billion from equities, marking the first outflow in three months. Market strategists questioned whether investors possess the patience to wait for returns from mega-scale cloud companies, with some noting that the dominance of large-cap tech stocks and Bitcoin is waning.