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Stock impact report

Market Outlook: AI scare trade fuels volatility as investors turn defensive [BNN Bloomberg (Canada)]

Algorhythm Holdings, Inc. (RIME) 
Company Research Source: BNN Bloomberg
Investors are grappling with what one strategist calls an “AI scare trade,” as markets react quickly to headlines about potential disruption. BNN Bloomberg spoke with Craig Basinger, chief market strategist at Purpose Investments, who said recent price moves reflect short-term overreactions and fragile sentiment, even as global earnings growth and international markets present selective opportunities. Key Takeaways Artificial intelligence headlines are triggering rapid selloffs across sectors as investors question the durability of traditional business models. Recent declines in trucking, wealth management and real estate stocks reflect what some see as short-term overreactions rather than fundamental shifts. Market leadership has rotated, with both defensive and cyclical sectors outperforming tech in an unusual pairing that signals fragile sentiment. After three strong years for equities, a more defensive posture is emerging as investors respond to heightened volatility a Show less Read more
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