Jefferies warns that China's affordable AI models could disrupt US tech giants, impacting investor confidence and slowing revenue growth.

Morgan Stanley, Jefferies, and SpaceX warn that public backlash over AI job losses and energy costs poses material risk to tech stock valuations.

The Nasdaq fell 2.2% and S&P 500 dropped 1.4% as investors question stretched AI valuations and $500 billion in AI-related corporate borrowing in 2026.