The artificial intelligence rally that has defined equity markets for months is showing clear signs of fatigue, with investor sentiment shifting sharply as volatility surges across tech-heavy indices.
The broad-based decline in momentum suggests a potential regime change for growth stocks, moving markets away from the relentless buying pressure seen in earlier quarters.
This repricing reflects a growing divergence in performance, where only a select few names continue to benefit from the AI narrative while others fall out of favor.
The shift indicates that investors are becoming more selective, demanding stronger fundamentals rather than riding the sector-wide wave.
Volatility has spiked as traders adjust positions, highlighting the fragility of the current consensus.
The move comes as algorithmic investment logic also shows signs of convergence, with independent systems identifying similar portfolios of preferred equities.