Stock markets tumbled Friday as fears of an AI bubble deepened a tech selloff, with investors also rattled by weak economic data and a prolonged US government shutdown.

The tech-heavy Nasdaq index was down almost two percent near midday on Wall Street, with shares in the world's most valuable company, AI chip designer Nvidia, shedding more than four percent.

"It's one thing for equity markets to suffer a general pullback, as happened during the Trump Tariff Tantrum in April," said David Morrison, analyst at Trade Nation financial services firm.

"But it's quite another to see stocks at the vanguard of AI development getting trashed. What adds to concerns is that there has been no obvious catalyst for the selloff," he added.

Massive investments in artificial intelligence have fuelled a t

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