Rising caution around AI equities continues to influence global markets as investors reassess stretched valuations and anticipated financing needs across the sector. Several major indices, including the Nasdaq and S&P 500, have been affected by ongoing rotation from high-growth technology shares to defensive assets. Analysts noted that concentrated positioning in AI-related companies has amplified recent swings, with markets responding sharply to minor earnings or guidance shifts. While long-term adoption trends remain strong, near-term volatility is being driven by concerns over capital requirements, competitive dynamics, and tightening global liquidity conditions.