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US equities retreat as risk appetite weakens on inflation and valuation concerns
Wall Street ended lower as investors pulled back from equities, citing worries over an AI-driven valuation bubble, persistent inflation risks, and uncertainty surrounding the Federal Reserve’s future policy direction.
US stock markets closed lower as investors turned cautious amid renewed concerns over elevated inflation and stretched valuations in technology stocks. Selling pressure intensified in AI-linked names, with fears growing that expectations around future earnings may be overly optimistic. Broader sentiment was also weighed down by uncertainty over the Federal Reserve’s policy outlook, prompting investors to reduce exposure to risk assets and rotate toward safer positions by the session’s close.