An AI stock crash would spark a US recession and global economic stagnation, Fitch warns

Fitch Ratings has warned that a sharp correction in AI stocks could trigger a US recession and global economic stagnation. In a report released Tuesday, the firm modeled a scenario where AI sector stock prices drop 35% over six months, leading to an economic downturn in the US and spreading weakness worldwide over the next year. The analysis suggests that a major re-evaluation of AI investments' ability to generate returns could cause such a shock.

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