Ray Dalio Warns of AI Bubble as Oil Prices Rise
Ray Dalio warned that artificial intelligence is a classic bubble while tanker attacks in the Strait of Hormuz drove up oil prices and disrupted global markets.
Billionaire investor Ray Dalio warned that artificial intelligence has become a "classic bubble" nearing a bursting point. He attributed this volatility to rising interest rates and a growing need for liquidity across the sector.
Global markets faced simultaneous pressure from geopolitical tensions in the Strait of Hormuz, where mounting attacks on tankers pushed oil prices higher. These events halted a broader stock rally and caused global bonds to fall. While the S&P 500 remained steady after hitting a record high, Europe's Stoxx 600 declined by 0.6%.
In South Korea, SK Hynix shares dropped nearly 3% ahead of the expiry of a lockup on its American depositary receipts.
