Data 'fog' has some investors feeling for the exits as AI stock valuation fears flare
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The U.S. shutdown has ended but the hangover is just beginning for investors, who worry gaps in economic data will delay or even derail Federal Reserve rate cuts just as concerns over lofty AI stock valuations have put fresh pressure on companies' stocks and bonds. Unease drove the heaviest selloff for the rate-sensitive Nasdaq in a month on Thursday. The index, which has soared this year with booming AI shares, is down about 4% from October's peak. Pressure continued in early trade on Friday, with blue-chip bourses from Tokyo to Paris and London deep in the red, but eased later in the day , with the S&P 500 ending slightly lower and the Nasdaq Composite up 0.13%. Even gold and bitcoin were not spared, the latter hitting lows below $96,000 last seen in May. Credit spreads - or the premium over U.S. Treasuries paid by companies to issue bonds in the U.S. market - widened this week. "The market certainly has some froth bo...