The International Monetary Fund is closely monitoring the recent volatility in stocks linked to artificial intelligence but says it is too early to conclude that investor sentiment is cooling for the long term. It is also tracking political uncertainty in the United States, where new approaches by governors could slow the approval of data center construction projects. Its October report highlighted risks tied to elevated valuations, rising debt at large technology companies and their growing role in bond markets. Under the IMF’s downside scenarios, a slowdown in artificial intelligence investment could reduce global GDP by as much as 1.1% by 2028 and US output by as much as 1.8%. The Magnificent Seven technology stocks now account for more than 35% of the S&P 500, compared with 12% a decade ago, increasing portfolio concentration tied to artificial intelligence.
Source: Read the original article
