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Volatility spikes as AI euphoria meets trade uncertainty
Volatility rises as AI enthusiasm clashes with policy and trade risks.
Wall Street’s volatility index jumped to a four-month high as traders balanced optimism from AI-driven stocks with renewed trade tensions. Tech and semiconductor names fluctuated sharply after policy remarks from Washington and Beijing. Analysts attributed the move to portfolio hedging ahead of major U.S. earnings releases. Despite near-term jitters, risk appetite remains intact for AI infrastructure plays, underscoring the tug-of-war between innovation optimism and global macro caution.