AI Stock Selloff Deepens as Debt Concerns Rattle Markets

AI has driven outsized market gains; sharp reversals raise fears of broader correction and expose risks of over-leverage in the sector. The selloff coincides with earnings season and intensifies questions about whether the sector's expansion justifies its valuation and infrastructure costs. The Economist reports that ten publicly listed AI cloud providers have $100 billion in combined borrowings, triple their annual revenues. Surging oil prices compound inflation concerns, threatening economic growth.