Global Stocks Fall 2% Last Week as Tech Tumbles 5%, Goldman Sachs Warns of AI Spending Risks

GS-3.07%
According to Goldman Sachs' latest global outlook, global stock markets fell approximately 2% last week, with technology stocks sliding 5% amid momentum unwinding and profit-taking. Japan, South Korea, and Taiwan experienced steeper declines of 3% to 9%. Goldman's strategy team warned that the artificial intelligence capital expenditure boom is accumulating risks; if large-cap tech companies' profitability declines before AI returns materialize, equities face a double hit. The bank's long-term positioning suggests tilting toward higher quality factors, increasing exposure to commodities and infrastructure, diversifying into undervalued markets such as Europe and Japan, hedging tail risks through volatility positioning, and selectively participating in AI applications with stronger monetization potential.
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