Bank of England warns AI stock bubble rivals 2000 dotcom peak
12 hours ago
- #Bank of England
- #market correction
- #AI bubble
- Bank of England warns of potential sharp market correction due to negative investor sentiment on AI.
- US stock valuations resemble those near the peak of the dotcom bubble, with AI-focused companies holding unprecedented market value.
- The BoE's Financial Policy Committee notes increased risk of a market correction, with spillover risks to the UK financial system.
- S&P 500 hits record high, with 30% of its valuation concentrated in five AI-investing tech giants (Nvidia, Microsoft, Apple, Amazon, Meta).
- This is the most concentrated the S&P 500 has been in 50 years.