AI Stocks’ Wild Start to September: Mega-Rallies, Billion-Dollar Deals & Hype Under Fire
Key Facts Market Overview: AI Stocks Face September Reality Check The week opened with a notable cool-down in the red-hot AI trade, as investors returned from summer break and took profits in crowded tech positions. On September 2, U.S. indices fell roughly 0.7–0.8%, led by the previously high-flying “AI beneficiary” stocks reuters.com. This pullback followed a massive year-to-date rally in AI names and coincided with broader risk-off sentiment (amid worries over tariffs, inflation, and rising bond yields) reuters.com reuters.com. Analysts and fund managers indicated that the selling was broad-based and largely driven by risk management rather than a fundamental crack