Investors have become sensitive to any negative news surrounding the AI and were given a jolt this week when it emerged that tech billionaire Peter Thiel’s hedge fund had offloaded all its Nvidia stake

Tokyo and Seoul led equity losses on Tuesday, while bitcoin dropped below $90,000 as investors grow increasingly concerned about tech valuations.

Building anxiety that this year’s record rally linked to all things artificial intelligence has made some traders question whether the billions spent on the industry might not see the big returns as soon as hoped.

Investors have become sensitive to any negative news surrounding the AI and were given a jolt this week when it emerged that tech billionaire Peter Thiel’s hedge fund had offloaded all its Nvidia stake, which Bloomberg valued at about $100 million.

Analysts are sounding upbeat ahead of the report, Neil Wilson at Saxo Markets said in a note. But the bar is set very high and we know that if investors are starting to wobble the whole house of cards can come crashing down at any point.

Profitability at the stocks at the heart of the AI bubble remains very strong, but any weakness evident in the (third quarter) from Nvidia would be punished hard by markets, he added.

Thursday is expected to see the release of the US September jobs report after delays due to the government shutdown. The data will provide a new snapshot of the country’s economy and give an idea about the probability of another rate cut.

The chances of a December cut are nearly 50-50, with the country’s central bank officials recently flagging concerns about inflation more than the jobs market.

Bank Chair Jerome Powell said last month that another cut at its December policy meeting was not a “foregone conclusion”, a comment that has been echoed by a number of colleagues.