The AI rally may have finally met its match - the Fed - Reuters

<a href="https://news.google.com/rss/articles/CBMisgFBVV95cUxNZFh0ZXR3OW5raVRWQ2pXM2NDUWNoVnh6WFlISWJuM2ExbW9YdjZmWDhwVFBGbzFZaUVldUYtRlJPZnVlMkRuWjdhRFdPVi1HV0NGX3dIcjM5NTE5ZC1PZW10WTdYQTRTWU56czVvVWJ3M2dGZ0tXeHkwVzliV0hFZXY1YTlGTnNWbGNsY2pXZ1dtc3dIbkQ0TnhtaE1ZaDk0S0hRYWZvTkJCOUNQUUZnZkxB?oc=5" target="_blank">The AI rally may have finally met its match - the Fed</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Asian markets extended last week's selloff, with semiconductor stocks hit hardest and South Korea's KOSPI dropping over 4.5%. U.S. markets fell sharply after strong jobs data increased the likelihood of a rate hike this year, prompting investors to retreat from top-performing bets.

A significant selloff in technology stocks swept across Asia, with South Korea's KOSPI falling more than 8%, triggering circuit breakers. This followed a U.S. jobs report that heightened expectations for Federal Reserve interest rate hikes, negatively impacting growth stocks.

The article discusses how the Federal Reserve's potential interest rate hikes could pose a challenge to the ongoing AI-driven stock market rally, highlighting concerns about valuations and the sustainability of the current market trend.

The article examines how rising interest rates, potentially influenced by Federal Reserve actions, could burst the current AI stock market bubble, citing significant declines in major indices and concerns over high valuations.