Global Markets Shake Off AI Fears as Sector Rotation Takes Hold

Global stock markets experienced a turbulent week, with the tech-heavy Nasdaq index falling 2.6 percent on Thursday and chip companies dropping nearly seven percent, while oil prices continued to rise. The volatility stems from fears that massive investments in artificial intelligence may not yield returns. Nordnet analyst Roger Berntsen argues the situation is less dramatic than headlines suggest, describing it as classic sector rotation rather than panic. Investors are moving capital from technology companies into traditional businesses and US government bonds, which are considered safer than stocks. Berntsen advises Norwegian fund savers to maintain a long-term perspective, noting that diversified funds offer better protection than concentrated tech portfolios. Nordea, however, describes panic in the market, with upcoming earnings from Microsoft, Alphabet, and Amazon expected to influence tech stock direction.