This was a reversal from the initial post-election rally, when markets had responded positively to expectations of a potentially more conventional policy backdrop. The S&P 500 fell 4.4 per cent and the Nasdaq fell 5.5 per cent on Thursday. The Philadelphia Semiconductor Index fell 12.3 per cent, extending its drawdown since June to around 38.3 per cent. Pressure extended into Friday, with North Asia's tech-heavy indices leading declines.

Mark Haefele, chief investment officer at is also wary of calling this the end of the AI story, since this is about the fifth time in the last 12 months that they have had a sharp fall and each time they have rallied.

"The other point to highlight is that these hyperscalers have actually been lagging the broader market over the last couple of years. For our own stance, we don’t think there is a technology bubble to burst – rather, we think that other stocks will simply outperform as they take advantage of productivity gains. We’ve been moving progressively underweight US mega-cap technology names through this year, favouring instead an equal weighted index that reflects the performance of the average stock in the index," Seager-Scott said.