Part 4/8:
Both Phil Pilkington and John Rapley, economists and contributors at Unheard, emphasized that the recent AI boom has heavily influenced market sentiment. Nvidia, for instance, accounted for around 14% of the NASDAQ index before the debut of Deep Seek's model, signifying the entire market's reliance on a handful of technology companies that promise revolutionary breakthroughs.
As these firms face existential threats from cheaper alternatives, the potential for a market bubble to burst grows more pronounced. Investors are now re-evaluating their positions, leaning towards caution, and hinting at a possible downturn that could reverberate through the broader economy.