Thursday, 9 October, 2025
Bank of England Warns AI-Driven Valuations Heighten Risk of Sharp Market Correction
The Bank of England’s Financial Policy Committee cautioned that equity valuations—especially in AI-related tech firms—are stretched and overly concentrated, echoing the dot-com bubble era. If investor sentiment sours on AI or doubts emerge about U.S. Federal Reserve independence, markets could face a sudden and sharp correction. The warning frames global tech stocks as vulnerable amid high expectations and limited margin for error.
Read full story at Money Control