Stock markets fell Tuesday as investors weighed the recent tech rally on Wall Street against growing fears of an AI bubble and concerns over the US interest-rate outlook.

A flood of multi-billion-dollar investment into artificial intelligence has been a key driver of the surge in mostly technology equities across the globe this year, sending valuations to record highs.

But there is increasing talk that tech-led gains may have gone too far and a painful correction could be on the way.

"Wall Street CEOs have also put investors on notice for a correction in the next 1-2 years," said Kathleen Brooks, research director at trading group XTB.

"It seems like the investment community has taken heed of this message," she added.

Paris and Frankfurt stock markets shed more than one percent in mid

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