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Tech stocks face volatile week as AI bubble fears and earnings loom
Major technology earnings are set to intensify scrutiny of whether AI spending can justify elevated valuations, while geopolitical tensions add the risk of energy price spikes.
Markets are bracing for a potentially volatile stretch as AI bubble fears build and technology-sector repricing has yet to reach what some investors view as equilibrium, according to Yahoo Finance.
With earnings season accelerating through late July, results from Tesla, Google, Intel and International Business Machines are expected to test whether artificial intelligence investments can support the sector's current, very high valuations.
The week also comes as geopolitical tensions intensify after an Iranian attack that killed two U.S. service members, raising concerns that the diplomatic framework that has kept access through the Strait of Hormuz stable could unravel, which could renew energy price spikes.
Beyond tech, Yahoo Finance points to financial services earnings from Interactive Brokers and Charles Schwab as additional catalysts for volatility tied to trading volumes and wealth management flows, while Friday’s preliminary July PMI data is set to offer a forward-looking read on whether economic fundamentals align with the valuation-driven tech rotation.