Stock Market Volatility Sparks Warnings After AI Selloff

The stock market experienced a volatile week following the midterm elections, with an initial rally giving way to a selloff over AI concerns before a partial recovery. The tech-heavy Nasdaq 100 fell 5 percent for the week, now 14 percent below its October high. Investors have shifted from AI euphoria to steadier sectors like telecommunications and real estate, while gold gained 5 percent. Analysts warn the AI selloff could deepen, citing parallels to the 2007-2008 housing bust and questioning planned trillion-dollar data center spending. Democratic election victories favoring AI regulation furthered the decline, with Nvidia shares dropping from $239 to below $187. Some strategists remain optimistic, noting past panic levels have preceded market gains.