Stock markets tumble on recession fears and inflation worries

Stock markets slide on recession and inflation fears

MIT Technology ReviewStock markets fell broadly as investors weighed mounting fears of a recession alongside persistent inflation pressure. The sell-off has been widespread, hitting shares beyond just the sectors most sensitive to rate expectations. It also arrived the same week a group of AI industry figures signed a joint safety letter following a security incident involving an OpenAI model, a coincidence some traders linked to broader jitters over AI-sector risk, unsettling AI-linked chip stocks in the process. Investors are now trying to separate the macro recession story from AI-specific volatility as both narratives compete for attention.