Wall Street Sees AI Backlash as Growing Risk to Tech Rally

The news headline highlights increasing concerns surrounding the artificial intelligence sector, creating a negative catalyst for AI-focused stocks such as NVDA. Technical indicators support this view: the RSI is approaching oversold territory at 35.46, while the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day (203.01) and 50-day (206.66) moving averages, having lost 5.28% in the last 24 hours. In the short term, selling pressure is likely to persist, though some recovery may occur due to oversold conditions.

The news headline indicates that excessive optimism in the artificial intelligence sector poses a risk to the technology rally. AMD's last closing price was $519.68, experiencing a daily decline of 2.54% and trading below its 20-day moving average of $527.05. The RSI is at 47.2, in neutral territory, but the MACD line is below the signal line and negative, suggesting short-term weakness. Combined with technical indicators and negative news, AMD is highly likely to continue its downward trend over the next 1-3 days.

GOOGL shares have lost more than 6% in the last 24 hours, closing at $345.36. Although the RSI at 37.3 approaches oversold territory, the MACD line remains negative below the signal line. Trading below the 20-day simple moving average ($347.41) and the 50-day average ($359.49) indicates short-term weakness. News headlines highlight growing risk perception in the AI sector, which could pressure technology stocks. Therefore, the downtrend is likely to continue over the next 1-3 days.