"There are growing fears of an imminent stock market crash one that will transform from a dip to a dive when euphoric headlines about the wonders of artificial intelligence begin to wane. Shares in US tech stocks have fallen in recent weeks and the prospect is that a flood of negative numbers will become the norm before the month is out."
"He said the Fed was concerned about rising inflation, while at the same time willing to help an economy dogged by uncertainty induced by Donald Trump and a global economic slowdown. With stagflation a genuine prospect as the US economy slows and inflation remains high Powell gave stock markets a sign that interest rates will fall, easing the pressure on indebted companies."
There are growing fears of an imminent stock market crash as AI-driven optimism fades and US tech shares have recently fallen. The scenario could mirror the 2000 dotcom collapse, with investors discarding businesses that now resemble liabilities. The Federal Reserve expressed concern about rising inflation while signaling willingness to support an economy facing uncertainty from political factors and a global slowdown. Stagflation is a genuine prospect as growth slows and inflation stays high, leading to indications that interest rates may fall and reduce pressure on indebted companies. Many personal pensions are heavily invested in listed companies, and most firms investing in generative AI have yet to see financial returns, contributing to sharp pullbacks in high-flying names.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]